california joint powers risk management authority...nov 16, 2017 · case no.: cvpm-16-67506 . iv....

Per Government Code section 54954.2, persons requesting disability-related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837-0667 24 hours in advance of the meeting.

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CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY

BOARD OF DIRECTORS MEETING Thursday November 16, 2017 9:00 A.M.

CJPRMA Main Office

3201 Doolan Road, Suite 285 Livermore, CA 94551

(925) 837-0667

AGENDA

I. CALL TO ORDER

II. ROLL CALL

III. CLOSED SESSION

1. Government Code Section 54956.9 (a) Conference with Legal Counsel – Litigation

Name of Case: Vexler, Talya v. City of Fremont Court: Superior Court of the State of California, County of Alameda Case No.: HG13692644


Name of Case: Miller, Mary v. City of Willits Court: Superior Court of Mendocino County Case No.: CVPM-16-67506

IV. ACTION ON CLOSED SESSION ITEMS

V. PRESENTATIONS

• None

VI. THIS TIME IS RESERVED FOR MEMBERS OF THE PUBLIC TO ADDRESS THE BOARD OF DIRECTORS ON MATTERS OF BOARD BUSINESS. STATE LAW PROHIBITS ACTION BY THE BOARD ON NON-AGENDA ITEMS.

VII. COMMUNICATIONS

1. Board of Directors 2. General Manager/Secretary 3. Next Scheduled Meetings: Executive Committee (01/18/2018) Loomis, CA

Board of Directors (03/15/18) CJPRMA

Per Government Code section 54954.2, persons requesting disability-related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837-0667 24 hours in advance of the meeting.

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VIII. APPROVAL OF MINUTES

• Minutes of the Board of Directors meeting held August 17, 2017 (Pages 3 - 14)

IX. CONSENT CALENDAR 1. Additional Covered Party Certificates Approved by the General Manager (A)

(Pages 15 - 24)

2. Financial Report of CJPRMA as of June 30, 2017 (A) (Pages 25 - 41)

X. ACTION (A) AND INFORMATION (I) CALENDAR

3. Report from the Investment Manager (I) (Pages 42- 71)

4. Approval of the 2017 Actuarial Report and Proposed Funding and Rates for PY 2018/2019 (A) (Pages 72 - 77)

5. Approval of Board Policy for Annual Review of Member Loss History (A) (Pages 78 - 83)

6. Approval of 2018-2019 ELF contribution based upon loss experience (A) (Pages 84 - 85)

7. Report on state of the insurance industry and anticipated impact of the North Bay Fires (I) (Page 86)

8. City of Vallejo appeal of Property Coverage for leased facilities (A) (Pages 87 - 94)

9. Applying the California Tort Claims Act (I) (Pages 95 - 103)

10. Status Update on the Development of CJPRMA Excess Workers’ Compensation Program (I) (Pages 104 - 105)

11. Business Calendar for 2017 and 2018 (I) (Pages 106 - 110)

12. New Board Members / Alternates (I) (Pages 111 - 114)

13. Risk Management Issues (I) (Pages 115 -126)

XI. ADJOURNMENT

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WPData> Meetings> Minutes> 2017-2018 Board of Directors Minutes for August 17, 2017 Page 1 of 12


BOARD OF DIRECTORS MEETING Thursday August, 17, 2017 9:00 A.M.

CJPRMA Main Office

3201 Doolan Road, Suite 285 Livermore, CA 94551

(925) 837-0667

MINUTES

I. CALL TO ORDER

• President Hamilton called the meeting to order at 9:05am.

II. ROLL CALL

PRESENT:

ABSENT: REMIF OTHERS PRESENT:

1) Lucretia Akil, Alameda 11) David Rawe, Roseville 2) Jamie Cannon, Chico 12) Mary Ann Perini, San Leandro 3) Craig Conwright, Fremont 13) Stacey Peterson, San Rafael 4) Janet Hamilton, Livermore 14) Amanda Tonks, Santa Rosa 5) Janice Magdich, Lodi 15) Roger Carroll, SCORE 6) Cecilia Quiambao, Petaluma 16) Gail Kiyomura, Stockton 7) Lynette Frediani, Redding 17) Laura Marquez, Sunnyvale 8) Kim Greer, Richmond 18) Erika Leahy, Vallejo 9) Laura Snideman, Fairfield 19) Celeste Garrett, Vacaville 10) Astrida Trupovnieks, NCCSIF 20) Marinda Griese, YCPARMIA

21) Amber Foster, Chico 31) A. Byrne Conley, Gibbons & Conley 22) Jas Sidhu, Livermore 32) Dr. William Deeb, AON Risk Services 23) David Clovis, CJPRMA 33) Robert Lowe, Alliant Insurance Services 24) Lola Deem, CJPRMA 34) Martin Cassell, Chandler Assets Management 25) Craig Schweikhard, CJPRMA 35) Marcus Beverly, Alliant Insurance Services 26) Saima Kumar, CJPRMA 36) Chris Carmona, George Hills Company 27) Marcia Hart, CJPRMA 37) Theresa Roland, Stockton 28) Susanna Banuelos, CJPRMA 38) Emily Combs, Fairfield 29) Kelly Trujillo, Vallejo 39) GeorgeAnne Meggers-Smith, Vacaville 30) Rick Buys, Risky Business Pros 40) Teri Pacioni, Risky Business Pros

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III. CLOSED SESSION


Name of Case: Meyers, Mathew v. City of Davis, et al. (YCPARMIA) Court: Superior Court of the State of California, Yolo County Case No.: PO16-316


Name of Case: Nguyen, Nhan v. City of Roseville Court: Superior Court of the State of California, County of Placer Case No.: SCV0038761


Name of Case: Flowers, James v. City of Richmond Court: Superior Court of the State of California, County of Contra Costa Case No.: C16-02113

IV. ACTION ON CLOSED SESSION ITEMS

• The Board of Directors conferred with staff regarding litigated claims and provided direction.

V. PRESENTATIONS

• David Clovis, CJPRMA – Upcoming training sessions and new CJPRMA website.

VI. THIS TIME IS RESERVED FOR MEMBERS OF THE PUBLIC TO ADDRESS THE BOARD OF DIRECTORS ON MATTERS OF BOARD BUSINESS.

VII. COMMUNICATIONS

1. Board of Directors 2. General Manager/Secretary 3. Next Scheduled Meetings: Executive Committee (09/28/2017) CJPRMA

Board of Directors (11/16/17) CJPRMA

VIII. APPROVAL OF MINUTES

• A motion was made by Director Cannon and seconded by Director Griese to approve the May 24 & 25, 2017 minutes. Directors Akil, Schwarz, Hamilton, Magdich, Quiambao, Frediani, Greer, Snideman, Trupovnieks, Peterson, Rawe, Perini, Kurihara, Carroll, Kiyomura, Marquez, Leahy, and Garrett approved the motion. REMIF was not present. Motion passes.

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IX. CONSENT CALENDAR

1. Additional Covered Party Certificates Approved by the General Manager (A)

2. Financial Report of CJPRMA as of May 31, 2017 (A)

• A motion was made by Director Quiambao and seconded by Director Perini to approve the Consent Calendar. Directors Akil, Schwarz, Hamilton, Magdich, Cannon, Frediani, Greer, Snideman, Trupovnieks, Peterson, Rawe, Griese, Carroll, Kiyomura, Marquez, Leahy, Tonks and Garrett approved the motion. REMIF was not present. Motion passes.

X. ACTION (A) AND INFORMATION (I) CALENDAR

3. Report from the Investment Manager (I)

Mr. Martin Cassell, Chandler Asset Management, was present to discuss the CJPRMA portfolio and investment strategy. He also provided an update on economic factors that have had a direct impact on the pool investments.

The investment program is divided into three parts: The Loss Payment Account, the Long Term Growth Account and the Long Term Growth/Tactical Account. The Loss Payment Account is utilized to provide funds for operating expenses and the payment of losses. The Loss Payment Account invests in high grade securities with a maximum maturity of five years. As of July 31, 2017, the Loss Payment Account was valued at $3,748,897. This was an increase of $4,648 from its valuation of $3,744,249 on April 30, 2017. Multiple securities were purchased across the Treasury, Asset Backed, and Commercial Paper sectors of the market to keep the overall duration of the strategy close to the one year target. The purchased securities ranged in maturity from November 2017 to October 2021. Two securities matured to help facilitate the new additions to the portfolio. The overall balance of the portfolio remains below the $10mm target and CJPRMA staff and the Chandler team will be working to increase the allocation closer to target in the coming months as premium payments are collected by the JPA. The Loss Payment Account has sufficient funds to meet the expenditure requirements of the next six months. Both Long Term Growth Accounts are utilized to provide long term asset growth in order to offset inflation. The maturity range of these investments is a maximum of ten years. As of July 31, 2017, the Long Term Growth/Tactical Account was valued at $29,001,943. This was a decrease of $2,853,770 from its valuation of $31,855,713 on April 30, 2017. Several securities were purchased across the Treasury, Agency, Supranational, Asset Backed and Commercial Paper sectors of the market to keep the portfolio structure in-line with Chandler objectives. Due to the below target allocation in

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the Loss Payment Account the Tactical Long Term Growth account has been utilized as the source of liquidity over the past several quarters. Notably $3 million was withdrawn in July and multiple securities in the Treasury, Agency, and Corporate sectors were sold to facilitate the withdrawal. As of July 31, 2017, the Long Term Growth Account was valued at $38,693,745. This was an increase of $324,664 from its valuation of $38,369,081 on April 30, 2017. Transactional activity was light during the quarter as the yields available in longer maturity assets in both the Treasury and Agency sectors are relatively unattractive in Chandler’s judgement. The Chandler team purchased the same security maturing in 2027, once in May and once in June, to keep the overall structure of the portfolio in-line with our internal target for the strategy. Two shorter maturity Treasury notes, both with maturities in 2022, were sold to facilitate the new positions in the portfolio. The investments in all accounts comply with CJPRMA’s investment policy. • No action was required. This is an information only item.

4. Business Calendar for 2017 and 2018 (I)

The 2017 and 2018 business calendar was provided to the Board as a standing agenda item. The calendar provides key business items and the required dates for completion for the Board.

• No action was required. This was an information only item.

5. Approval of the Holiday Schedule for 2018 (A)

The 2018 Holiday calendar was presented to the Board. The calendar provides the dates of the holidays for calendar year 2018.

• A motion was made by Director Akil and seconded by Director Magdich to approve the Holiday Schedule for 2018. Directors Quiambao, Schwarz, Hamilton, Perini, Cannon, Frediani, Greer, Snideman, Trupovnieks, Peterson, Rawe, Griese, Carroll, Kiyomura, Marquez, Leahy, Tonks and Garrett approved the motion. REMIF was not present. Motion passes.

6. Approval of the Meeting Schedule for 2018 (A)

The 2018 Meeting calendar was presented to the Board. The calendar provides the schedule for the Executive Committee and Board of Director meetings.

• A motion was made by Director Cannon and seconded by Director Snideman to approve the Consent Calendar. Directors Quiambao, Schwarz, Hamilton, Perini, Akil, Frediani, Greer, Magdich, Trupovnieks, Peterson, Rawe, Griese, Tonks, Carroll, Kiyomura, Marquez, Leahy, and Garrett approved the motion. REMIF was not present. Motion passes.

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7. Appointment of CJPRMA Claims Committee Members (A)

President Hamilton announced the names of the new CJPRMA Claims Committee. This committee will serve a two year term. They will be responsible for creating a schedule of the committee and developing an approach to provide feedback to the Board of Directors at their meetings. The list of member’s staff that were assigned to the Claims Committee are:

Kim Greer - Committee Chair, Richmond Andria Borba, Vacaville Dave Rawe, Roseville Steve Schwartz, Fremont Jas Sidhu, Livermore Kelly Trujillo, Vallejo Byrne Conley – Board Counsel David Clovis, CJPRMA Staff Member

• A motion was made by Director Garrett and seconded by Director Quiambao to

approve the appointment of members to the CJPRMA Claims Committee. Directors, Snideman, Schwarz, Hamilton, Perini, Akil, Frediani, Greer, Magdich, Trupovnieks, Peterson, Rawe, Griese, Carroll, Kiyomura, Marquez, Leahy, Tonks and Cannon approved the motion. REMIF was not present. Motion passes.

8. Election and Appointment of Executive Committee Members (A)

The Bylaws require the election of two non-officer positions in odd numbered years. The current terms for Director Magdich and Director Carroll expired on June 30, 2017. The Bylaws state that a non-officer director must have served on the board for at least twelve (12) consecutive months preceding the date of the election to be eligible for the office. The following nominees qualified for election and were listed on the ballot for members to vote. (Note: Strikethroughs indicates Directors that were not interested or unavailable to serve on the Executive Committee and withdrew their names from the ballot)

Lucretia Akil, Alameda Mary Ann Perini, San Leandro Jamie Cannon, Chico Stacey Peterson, San Rafael Laura Snideman, Fairfield Deanna Solina, Stockton Steven Schwarz, Fremont Laura Marquez, Sunnyvale Janice Magdich, Lodi Claudia Quintana, Vallejo Lynette Frediani, Redding

Article III – Bylaws states “The candidate receiving the greatest plurality of votes will be elected to that position. In the event of a tie, those not involved in the tie will be eliminated and the remaining candidates will be the subject of a runoff election. If unsuccessful after the runoff, the election for that office will start again with all the candidates eligible”

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Members voted by ballot, then the ballots were tallied by General Manager and Board Counsel. The two members with the greatest plurality of votes were Director Magdich, Lodi and Director Frediani, Redding to fulfill the non-officer positions of the 2017-2018 Executive Committee.

In addition to the elected positions, a vacancy of a non-officer needed to be appointed from the rotation list. The next JPA eligible for appointment was SCORE. Director Carroll was appointed to replace Director Tonks and carry out his term. The 2017-2018 Executive Committee is:

Janet Hamilton – President, Livermore Kim Greer – Vice President, Richmond Celeste Garrett, Vacaville David Rawe, Roseville Roger Carroll, SCORE Janice Magdich, Lodi Lynette Frediani, Redding

• No further action was required.

9. Approval of CJPRMA Litigation Policy (A)

The general manager gave an overview of how a Litigation Policy would benefit the members of CJPRMA versus a Litigation Guideline. It was stated that a Policy would ensure members are on a standard playing field and this would meet the requirements for CAJPA accreditation. He stated that it was first discussed and reviewed by the Executive Committee in February 2017, then presented to the Board of Directors at the May BOD meeting. At that time is was suggested that it remain a Guideline and not a Policy. The Executive Committee re-evaluated and deliberated this topic at their June 2017 meeting. The Executive Committee was unanimous in their evaluation of the Litigation Policy and voted and agreed the item should be adopted as a Policy. The Executive Committee expressed concern over not mandating such a policy that would be good for all members and a benefit to the pool. The committee also believes that a policy would assist staff and the claims auditor in having objective criteria to evaluate each member’s performance and ultimately having a positive impact on the litigation experience of CJPRMA. Director Carroll pointed out that the policy states that Risk Manager/City Representative. He suggested this should be changed to member representative since there are a number of JPA’s on in the Pool. Director Magdich also agreed with the suggestion and amended to motion to include the new language.

• A motion was made by Director Rawe and seconded by Director Akil to approve and adopt the Litigation Policy with the suggestion made by Director Magdich to make two modifications to the policy. First modification would be to change the wording from “adopted by and complied with” to “comply” and secondly, to change wording throughout the document to read “Member” and not “Risk Manager/City Representative”. Directors, Snideman, Hamilton, Perini, Quiambao, Frediani, Greer, Magdich, Trupovnieks, Peterson, Garrett, Griese, Carroll, Kiyomura, Marquez, Leahy Tonks and Cannon approved the motion. Director Schwarz opposed the motion, and REMIF was not present. Motion passes.

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10. Approval of Modification of Transit Vehicle Limitations (A)

The general manager explained that the City of Santa Rosa contacted CJPRMA requesting that the current limitation on transit vehicles be modified to include buses that have a seating capacity of 45 passengers or less. The city operates a fixed route transit service in their community and owns, maintains and operates the transit system. The city currently participates in the CalTIP program and their annual premium quote is in the amount of $139,681 for a $250,000 SIR. It was further explained that Santa Rosa worked with CJPRMA staff and provided loss run reports and a list of their current fleet. Staff then consulted with Dr. William Deeb at AON and directed him to discuss the possible modification to exclusion #24 of the Memorandum of Coverage with the reinsurers, Munich Re. Munich Re stated they agreed to the modification of exclusion #24 to reflect total capacity of 45 passengers for program year 2017-2018. The maximum limit of coverage for vehicles in excess of 30 passengers would be $25,000,000 for program year 2017-2018. For future years, staff and Aon would work with the excess carriers to provide additional coverage moving forward. The Board of Directors discussed with the general manger the potential change to the Memorandum of Coverage (MOC) exclusion #24. The general manager stated during the discussion that Santa Rosa or any city would not have transit coverage until they have reported their payroll. Numerous directors mentioned they were opposed to a modification because of the exposure, and that CalTIP is a stand-alone policy a city can get separate policy from CJPRMA that will take care of their bus maintenance and problems. • A motion was made by Director Schwarz and seconded by Director Rawe to have

the Board of Directors vote to authorize the general manager to modify the current (MOC) exclusion #24. Directors Cannon, Schwarz, Rawe, Tonks, Leahy, and Griese approved the motion. Directors Akil, Snideman, Hamilton, Magdich, Trupovnieks, Quiambao, Frediani, Greer, Perini, Peterson, Carroll, Kiyomura, Marquez, and Garrett opposed the motion, REMIF was not present. Motion failed.

11. Approval of the 2017 Claims Audit (A)

Mr. Rick Buys, Risky Business Pros conducted the 2017 Excess and Primary Claims Audit, and was present to discuss the results and recommendations of his audit. Mr. Buys examined a total of 150 files reported to CJPRMA for this audit. This represents a modest increase of 1 file from 2016. Included were 100 open files and 50 files that were either closing or recently closed. The audit work included site visits to members, TPAs and the CJPRMA office. Mr. Buys identified some recommendations made over the last several years, continue to be valid issues:

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1. Quarterly captioned status reports to CJPRMA are required on all Watch List cases, regardless of whether outside or in-house counsel is involved.

2. Once a claim is reported as an excess file to CJPRMA, reserve changes should be provided by Members to CJPRMA, at least quarterly.

3. CJPRMA now provides Members with an open claim loss run, on a quarterly basis. This document is to be used by the Members to update their reserves to confirm the adequacy and consistency of those reserves between CJPRMA and the Members.

4. When changes occur with Member staffs, lapses in excess reporting requirements can occur. CJPRMA meets with legal departments, as necessary, to assure clarity always exists between CJPRMA and the Members.

Loss development continues to require close monitoring as industry trend of increasing severity continues and in some areas frequency is also increasing. Mr. Buys articulated a number of conclusions resulting from his audit review of CJPRMA files. The following key items (included in the final report) were noted in the report:

• In looking at the number of claims reported to CJPRMA, the open claims count is down by 24%, going from 272 in 2015 to 208 in 2016 to 173 in 2017. The Total Pending Excess Reserves (reserves in the CJPRMA layer) is up by 18%, from $21.1 Million to $24.8 Million, which is well above overall economy inflation. (However, the fact that the number of open excess cases has dropped over the last year indicates staff is working hard to resolve cases where possible)

• The number of Watch List claims dropped from 26 in 2016 to 19 in 2017 (a drop of 27%).

• 82 of the audited claims are “critical incident” claims (55%), and all of those cases have the potential to become Watch List files.

• The climate for taking police claims through trial is currently poor, with some types of police cases worse than others.

• With indications of continued industry trends of increasing frequency and severity of claims, the need for effective communication between the Members and CJPRMA is critical to the successful resolution of claims.

• A motion was made by Director Akil and seconded by Director Trupovnieks

to approve the 2017 Claims Audit. Directors Cannon, Snideman, Schwarz, Hamilton, Magdich, Quiambao, Frediani, Greer, Rawe, Perini, Peterson, Tonks, Carroll, Kiyomura, Marquez, Garrett, Leahy and Griese approved the motion. REMIF was not present. Motion passes.

12. Development of Loss Allocation Policy for Annual Contributions (I)

The general manager reviewed with the Board of Directors member loss histories and how their exposures impact the annual contributions of the pooled membership. This

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item was discussed at the May Board meeting. The item was referred to the Executive Committee to provide recommendations to staff on the development of the loss numbers and development trends. The loss history was provided to the Executive Committee for comparing a members’ loss experience at five, ten, fifteen and twenty year increments. The loss data was reviewed and evaluated on how it would potentially impact the current contributions defined by the annual actuarial evaluation. The general manager worked with Mujtaba Datoo, Aon Risk Services, to develop a methodology for developing annual contributions that included an allocation based upon actual losses incurred. A spreadsheet (90-10) was created by Mr. Datoo and the loss allocation method was reviewed with the Executive Committee in June and also with the Board of Directors at the August meeting. The current methodology utilizes a member’s payroll as the sole factor in determining their percentage of contribution. The proposed method applies a pro rata share of contribution based upon a member’s incurred losses for the 10 year window in addition to payroll. This recommendation would utilize the member’s payroll as 90% of the total contribution and 10% would be based upon actual losses incurred in pools B and C. The spreadsheet provided the overall change in the contribution with this methodology. Due to the potential impact, staff recommended that the first year include a 10% maximum increase for any member that would be negatively impacted by the experience factor. The 10% would apply to the amount in excess of the contribution calculation based solely on payroll.

It was also explained that the additional loss contribution would be applied to the Excess Loss Fund (ELF). The additional contribution would not be applied to that member’s equity, it would remain in the ELF program. It was suggested that the Board consider modifying the 10% cap in future years, perhaps 15% in year 2 and 20% in year three. This would be included with the annual actuarial report and a final determination would be voted on and approved by the Board of Directors when approving the annual actuarial report.

The general manager stated that the Executive Committee directed staff to review each member’s overall loss history in relation to their contributions within the program. A copy of member loss experience rating 10 year rolling average for PY 03/04 – 12/13 was provided to the Board for review. He said that this would help to evaluate members with significant loss histories on an annual basis and make recommendations for adjusting their Self-Insured Retention (SIR). The general manager also stated that Staff considered the impact of a catastrophic individual loss on any one member and applied a $2,500,000 cap for all losses incurred by CJPRMA. This would further evaluate any member whose overall loss experience exceeds their contributions in excess of 175%. The Board would have the option of restricting the member’s participation in Pool B ($500K SIR). The recommended approach would be to provide the member with a pro-rata sliding share SIR in pool layer B. Any losses that exceed the $500K SIR would be subject to a sliding contribution of $250K; member would be required to pay up to $250K in layer B and CJPRMA would

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contribute the additional $250K. Staff is not currently recommending a sliding scale SIR to members that are currently only in Pool C. However, the same methodology could be applied as above. Instead of a shared $500K in excess of the SIR, a Pool C member would have a sliding share SIR to $1,000,000. The Board of Directors may consider this option at a later time.

The Board was provided with examples of sliding scale experience rated SIR listed below. If a member assigned to the sliding scale experience rated SIR were to sustain a loss in the total amount of $800,000 the following would apply: Member SIR: $500,000 (to be paid by member) Additional $300,000 expense: $150,000 (paid by member) + $150,000 (paid by

CJPRMA) If a member assigned to the sliding scale experience rated SIR were to sustain a loss in the total amount of $2,100,000 the following would apply: Member SIR: $500,000 (paid by member) Pool B: $500,000 $250,000 (paid by member) + $250,000 (paid by CJPRMA) Pool C: $1,100,000 $1,100,000 (paid by CJPRMA) A member would be assigned to the experience rated SIR for a minimum of three years. The member’s contribution to Pool B would remain the same. The member could opt out of the Pool B layer and only participate in Pool C, raising their SIR to $1,000,000. The contributions based upon loss experience will be presented to the Board for approval at the November board meeting when approving the June 30, 2017 actuarial study, which sets the funding rates for PY 2018/19. Members will be advised of their potential increase in contribution based upon their history of incurred losses at that time. Members will then have the opportunity to request a change in their retention from $500k (Pool B) to $1M (Pool C). After the boards’ collaboration on the matter, direction was provided to Staff to develop a written policy for ongoing evaluation of members and their overall impact on incurred losses. The board voted on two separate motions: 1) Adoption of a contribution based upon loss experience 2) Development of a written policy for ongoing evaluation of member and their overall

impact on incurred losses

• A motion was made by Director Carroll and seconded by Director Garrett to vote for the approval to adopt a 90/10 contribution based upon loss experience. Directors Akil,

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Cannon, Snideman, Schwarz, Hamilton, Magdich, Quiambao, Perini, Greer, Rawe, Peterson, Carroll, Kiyomura, Marquez, Leahy, Garrett and Griese voted in favor, Directors Trupovnieks, Frediani and Tonks opposed the motion, REMIF was absent. Motion passed.

• A motion was made by Director Griese and seconded by Director Carroll to vote for approval of development of a written policy on evaluation of a Members’ SIR. Directors Akil, Snideman, Carroll, Hamilton, Magdich, Quiambao, Trupovnieks, Frediani, Perini, Greer, Peterson, Kiyomura, Marquez, Garrett and Griese voted in favor, Tonks opposed the motion, Leahy, Schwarz, Piazzisi, Cannon and Rawe were absent. Motion passed.

13. Status Update on the Development of CJPRMA Excess Workers’ Compensation Program (I)

The general manger presented an update on the status of the development of a CJPRMA Excess Workers’ Compensation Program. It was explained that staff has collected initial data provided by members describing the current structure of their respective excess workers’ compensation coverage programs. The data was given to Dr. William Deeb, Aon Risk Service. Aon and staff are currently working towards developing a tentative structure for the CJPRMA Excess Workers’ Compensation program. The tentative structure of the program was discussed at the June Executive Committee. Staff then asked the membership to provide exposure data and payroll information. To date, members that have submitted data are: Chico, Livermore, Lodi, NCCSIF, Redding, Roseville, San Leandro and Sunnyvale, which accounts for approximately $665 million dollars of payroll. Our estimate for program viability predicts that a minimum of $750 million of payroll as a minimum to make the program stable. This was based upon initial discussions by Dr. Deeb and the market which indicated that their interest in a book of business would require approximately $1 billion of payroll to influence the program. Dr. Deeb and the general manager discussed that the current payroll value (reported at $665 million) is significantly less than anticipated, and they are prepared to discuss alternatives with the Board of Directors if needed. The goal is to develop a long-term cost effective solution for our member’s worker’s compensation programs, develop actual costs for the program and create a structure to be determined at the November Meeting. At this time, members will be receiving their final numbers to allow them the opportunity to provide withdrawal notices to their current pooling partners if required. Board agreed to carry on with the development of this program knowing they would need to submit more data so pricing can be done. Members that expressed interest in this program were SCORE, Fairfield, YCPARMIA and Petaluma. It was also stated that REMIF might be interested since their current program ends July 1, 2018. Hence, staff will utilize Aon Actuarial Services by Mr. Mujtaba Datoo, to create an actuarial study using predictive modeling. Actuarial data will be used to finalize the primary rate and assist staff in contacting the market for potential reinsurers to complete a finalized

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product. When the final rates and structure are developed and approved, staff will complete the final steps necessary to implement the program with a start date of July 1, 2018. • No action was required. This was an information only item.

14. New Board Members / Alternates (I)

Notifications regarding a change in director/alternate designations that have been received as of the last meeting are indicated herein:

1) REMIF Director Elena Piazzisi – Workers’ Compensation Claims Administrator (City of Sonoma)

2) YCPARMIA Director Marinda Griese – Staff Investigator (City of Woodland)

3) YCPARMIA Alternate Jeff Tonks – CEO/Risk Manager (City of Woodland)

4) REMIF New General Manager – Amy Northam

5) Vacaville Alternate – GeorgeAnne Meggers-Smith – Management Analyst II

15. Risk Management Issues (I) 1) Natural Condition Immunity – David Clovis, CJPRMA. David Clovis shared the

case County of San Mateo v. Superior Court.

2) Cannabis: dispensaries, manufacturers, and growers – Janice Magdich, Lodi Director Magdich asked what ordinances they use under the new law. She mentioned that Lodi doesn’t allow dispensaries. During the discussion, members mentioned that there is a “land rush” for growing and campuses in office complexes for growing, retail, and distribution. Some members claimed they will be No, No, No cities and not allow cannabis growing, retail, or distribution.

3) ADA Coordinator Responsibilities – Stacey Peterson, San Rafael Director Peterson asked members about ADA responsibilities. San Rafael currently has shared responsibilities under the Department of Justice, and so does Santa Rosa.

4) Law Enforcement and Security at Public Meetings – Celeste Garrett, Vacaville Director Garrett asked members if they provide law enforcement or security at public meets. Director Magdich stated that Lodi has security at council meetings but not planning commission meetings.

XI. ADJOURNMENT

• A motion made by Director Perini, and seconded by Director Snideman to adjourn the meeting at 2:39 p.m., motion passed unanimously.

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AGENDA BILL

ITEM: 1 TITLE: ADDITIONAL COVERED PARTY CERTIFICATES APPROVED BY THE GENERAL MANAGER

MEETING: 11/16/17

GENERAL MANAGER:

Recommended Actions:

Approval of the additional covered party certificates that have been issued by the general manager.

Strategic Direction:

This item addresses Strategic Goal 4, Actively Market the Value of CJPRMA Both Externally and Internally. Item Explanation:

Attached is Exhibit 1, which is a list of the 96 additional covered party certificates that have been approved by the general manager and issued since the last board meeting.

Fiscal Impact:

None

Exhibits: 1. Report of Additional Covered Party Certificates Approved by the General Manager

Certificate of Coverage Report Date Board Notice: Nov 16, 2017

Organization: Ascending order

Organization Member Additional Covered Party Amount of Coverage Requested

Activity Start Date

Activity End Date

Description

Alameda Alameda Jamestown South Shore Center, James L.P., Jamestown Urban Management L.P.

1,000,000.00 Sep 14, 2017

Sep 14, 2017

Jamestown South Shore Center, James L.P. for September 14, 2017 Holiday Season Job Fair at South Shore Center Alameda, Suite 770-2218 (adjacent common area).

Alameda Alameda State of California 1,000,000.00 Aug 11, 2017

Aug 11, 2027

Agreement for Temporary Assignment of Vehicular Equipment for statewide mutual aid response: 2001 HME/Westates 1250 GPM Fire Engine, OES-296, License Number E-959516, VIN 44KFT42871WZ19594

Anderson NCCSIF Cascade Union Elementary School District, its elected or appointed officials, employees, agents and volunteers

5,000,000.00 Dec 4, 2017

Feb 17, 2018

Facility Use Application & Permit for use of Anderson Middle School and Tree of Life Charter School gyms for Youth Basketball Program

Arcata REMIF County of Humboldt, its agents, officers, officials, employees and volunteers

2,000,000.00 Jul 1, 2017

Jun 30, 2018

Memorandum of Understanding between County of Humboldt and City of Arcata - Measure Z Funding

Arcata REMIF The Church of Jesus Christ of Latter-Day Saints

1,000,000.00 Dec 9, 2017

Dec 9, 2017

Application for Use of Facilities for Recreation Program for All Season's Orchestra concert

Chico Chico California State University, Chico, its officers, employees and agents

1,000,000.00 Sep 1, 2017

May 1, 2018

Cooperative Agreement for the Caper Acres "Swing" project

Cloverdale REMIF State of California, its officers, agents and employees

1,000,000.00 Nov 1, 2017

Dec 31, 2019

Third Amended Agreement for the implementation of State of California funded water conservation program TW # 14/15/012, Sonoma-Mendocino Immediate Drought Relief Project

County of Yolo

YCPARMIA California Agriculture Museum and The Heidrick Agriculture History Center, its officials, agents, employees and volunteers

1,000,000.00 Nov 11, 2017

Nov 11, 2017

Facility Rental Contract for Yolo County Sheriff's Posse Dinner

County of Yolo

YCPARMIA KOY Builders, Inc. and Clarksburg Wine Company LLC

1,000,000.00 Oct 7, 2017

Oct 7, 2017

Old Sugar Mill License Agreement Regarding Use of Facilities for Yolo County Sheriff's Employee Appreciation Luncheon

County of Yolo

YCPARMIA State of California, the District Agricultural Association, County Fair, the County in which the County Fair is located, Lessor/Sublessor if fair site is leased/subleased, Citrus Fruit Fair, or California Exposition and State Fair, their directors, officers, agents, servants, and employees

1,000,000.00 Oct 10, 2017

Oct 19, 2017

For use of fairgrounds Carnival lot for Physical Agility Training - Agreement #128-1017

County of Yolo

YCPARMIA Winters Joint Unified School District, its elected or appointed officials, employees, agents and volunteers

1,000,000.00 Aug 15, 2017

Aug 15, 2022

Cooperative Agreement for The Winters Library - Landscaping Maintenance

County of Yolo

YCPARMIA Woodland Biomass Power, Ltd., and its affiliates

5,000,000.00 Jul 1, 2017

Jun 30,

P.O. Contract for dropping off wood chips at Woodland Biomass

Nov 7, 2017 - 1 - 2:47:04 PM




Activity Start Date

Activity End Date

Description

2018 Power at no cost for Fiscal Year 7/1/17 - 6/30/18

County of Yolo

YCPARMIA Woodland Community College, its officers, agents, employees and volunteers

1,000,000.00 Aug 1, 2017

Jul 31, 2019

Agreement for the County to use campus fencing for testing its recruits

County of Yolo

YCPARMIA Yolo County Office of Education 1,000,000.00 Aug 21, 2017

Jun 30, 2018

Memorandum of Understanding to provide online high school programming and support as part of adult education initiatives program

Davis YCPARMIA Bank of America, National Association 2,000,000.00 Apr 30, 2017

Apr 30, 2037

License to Place Public Art Agreement for Display of Public Art Titled Collaboration

Eureka REMIF County of Humboldt, its officers, officials, employees and volunteers

1,000,000.00 Jul 1, 2017

Jun 30, 2020

Humboldt County Department of Health and Human Services Employment and Training Division Work Experience Work Site Agreement

Eureka REMIF Eureka City Schools, its officers and employees

1,000,000.00 Jul 21, 2017

Jun 14, 2018

Eureka City Schools Agreement with City of Eureka For After School Programs: Recreation staffing services to After School Education and Safety programs at various schools

Folsom NCCSIF First 5 Sacramento Commission, its officers, directors, officials, employees, and volunteers

1,000,000.00 Jul 1, 2017

Jun 30, 2025

Agreement for Tot Lot Playground maintenance dated 10/27/2009

Folsom NCCSIF Performance Modular, Inc. 2,000,000.00 Oct 15, 2017

Oct 15, 2022

Lease Agreement Number 1888, dated August 30, 2017 for one 36 feet by 60 feet custom modular office building number 293-294-295

Folsom NCCSIF State of California and the California Department of Parks and Recreation

1,000,000.00 Sep 17, 2017

Dec 31, 2017

Right of Entry Permit for access to Folsom Powerhouse State Historic Park for purposes of carrying out Permittee's Rainbow Bridge Waterline Rehabilitation Project

Fortuna REMIF County of Humboldt, its agents, officers, officials,employeesandvolunteers

2,000,000.00 Jul 1, 2017

Jun 30, 2018

Memorandum of Understanding between City of Fortuna and County of Humboldt related to "Measure "Z" Funds"

Fremont Fremont Connecting Waters Charter School 1,000,000.00 Jul 1, 2015

Jun 30, 2020

Charter School students to take classes through the City of Fremont Recreation Department

Fremont Fremont County of Alameda, its Board of Supervisors, the individual members thereof, and all County officers, agents, employees, volunteers and representatives

1,000,000.00 Jul 1, 2017

Jun 30, 2021

Sub-recipient agreement for HOME grant funds

Fremont Fremont The Bank of New York Mellon Trust Company, N.A

1,000,000.00 Aug 15, 2017

Jun 30, 2030

Fremont Public Financing Authority: Lease Revenue Bonds, Series 2017B (2017 Fixed Rate Refinancing Project,$19,725,000 )

Nov 7, 2017 - 2 - 2:47:04 PM




Activity Start Date

Activity End Date

Description

Fremont Fremont United Way Bay Area 1,000,000.00 Jul 1, 2017

Jun 30, 2018

Memorandum of Understanding - SparkPoint Fremont - to assist individuals and families achieve financial stability and independence through fundraising and promotions

Galt NCCSIF The County of Sacramento, its officers, directors, officials, employees, and volunteers

1,000,000.00 Nov 1, 2017

Jun 30, 2018

Agreement for design and specifications of wayfinding signage system for the City of Galt

Galt NCCSIF The State of California, its officers, agents and employees

2,000,000.00 Aug 16, 2017

Aug 16, 2022

Landscape Maintenance Agreement within State Highway Right of Way on Route 99 Within The City of Galt - Encroachment Permit Number 0316-6CS0907

Lincoln NCCSIF San Juan Unified School District 1,000,000.00 May 30, 2017

Jun 7, 2018

Enrichment classes for visions in education home school students

Livermore Livermore Aahmes Shrine Event Center, Aahmes Shriners, the Board of Directors, their Employees and Representatives

1,000,000.00 Sep 13, 2017

Sep 13, 2017

Rental of Event Center space by City of Livermore for downtown workshop

Livermore Livermore County of Alameda, its Board of Supervisors, the individual members thereof, and all County officers, agents, employees, volunteers, and representatives

1,000,000.00 Jul 1, 2017

Jun 30, 2019

Cooperation and Reimbursement Agreement for Construction of Public Improvements on Pleasant View Lane and Arroyo Road dated 9/27/16

Livermore Livermore The STATE of California, its officers, agents and employees

5,000,000.00 Oct 18, 2017

Oct 18, 2027

Landscape Maintenance Agreement within State Highway Right of Way on Route 580 within the City of Livermore - Encroachment Permit Number 0408-NMC-0348

Livermore Livermore The State, its officers, agents and employees

5,000,000.00 Aug 22, 2017

Aug 22, 2030

Maintenance Agreement for City of Livermore to install and maintain trail on State of California right of way - Encroachment Permit Number 0417-6MC0170

Lodi Lodi American Heart Association and Lodi Memorial Hospital Association, Inc. dba Lodi Health

1,000,000.00 Oct 2, 2017

Feb 21, 2022

Training Site Agreement between Lodi Health and City of Lodi to provide emergency cardiovascular care training for City of Lodi employees and the general public

Loomis SCORE Loomis Union School District 1,000,000.00 Sep 12, 2017

Sep 12, 2017

Application for Use of Facilities: Use of Loomis Grammar School Multipurpose Room for Town Hall Meeting

Loomis SCORE Placer Union High School District and its officers, agents, and employees

1,000,000.00 Oct 14, 2017

Oct 14, 2017

Del Oro High School Request for Use of School Facilities and/or Grounds agreement for Town of Loomis Fall Clean-Up Day

Loomis SCORE South Placer Heritage Foundation 100,000.00 Sep 26, 2017

Mar 31, 2018

Rental Agreement Blue Goose Event Center for Town of Loomis Public Meetings

Nov 7, 2017 - 3 - 2:47:04 PM




Activity Start Date

Activity End Date

Description

Marysville NCCSIF Ford Motor Credit Company LLC, their successors and assigns

1,000,000.00 Sep 20, 2017

Sep 20, 2021

Master Equipment Lease-Purchase Agreement Schedule No. 8580500

Marysville NCCSIF Marysville Financing Authority 6,000,000.00 Sep 1, 2017

Sep 1, 2038

2017 Lease Agreement for New Clean Renewable Energy Bonds

Marysville NCCSIF Western Alliance Business Trust, a wholly owned affiliate of Western Alliance Bank, an Arizona corporation

6,000,000.00 Sep 1, 2017

Sep 1, 2038

2017 Lease Agreement for New Clean Renewable Energy Bonds

Oroville NCCSIF Banner Bank and its assigns 10,000,000.00 Oct 5, 2017

Oct 5, 2037

Lease-Purchase Agreement dated October 5, 2017 between the City of Oroville and Holman Corporation for Solar and Energy Project

Petaluma Petaluma Basin Street Properties, SSCOP Properties LLC

1,000,000.00 Sep 17, 2017

Sep 17, 2017

Petaluma Police Department will utilize Basin Street building for four hours for a meeting and building searches. No live ammunition or simunition will be used.

Petaluma Petaluma Basin Street Properties, SSCOP Properties LLC, Nelson Petaluma Properties II LLC

1,000,000.00 Sep 12, 2017

Sep 12, 2017

Use of facility by several fire engine companies for conducting drills which include: ladders against buildings, dry hose lines inside building and firefighters performing search drills inside building to rescue down firefighters - all in a no damage fashion

Petaluma Petaluma Global Rental Co., Inc. 3,000,000.00 Sep 1, 2017

Dec 31, 2017

Rental of Equipment Agreement: DOT No. CA 46883 - 2014 Ford Chassis ATM40M, Vin #1FDUF5GT2EEB82481 - Aerial Truck replacement value $130,192.00

Petaluma Petaluma Sonoma County Transportation Authority 1,000,000.00 Oct 30, 2017

Jun 30, 2019

Sonoma County Transportation Authority (SCTA) - Transportation Fund for Clean Air (TFCA) Fund Transfer Agreement for FY 2017/2018.

Petaluma Petaluma Sonoma County Water Agency and State of California, their officers, agents, and employees

1,000,000.00 Oct 1, 2017

Dec 30, 2019

Proposition 1E Sub-Grantee Agreement for the Petaluma River Flood Management and Enhancement Project

Petaluma Petaluma Sonoma-Marin Area Rail Transit District, its successors and assigns, any railroad company operating on the Property, and their respective directors, officers, employees and agents

5,000,000.00 Nov 1, 2017

Nov 1, 2037

Revocable License Agreement between SMART (Licensor) and the City of Petaluma (Licensee) was developed to allow construction and operation of the new bus shelter. The sidewalk and shelter pad behind the bus pullout will encroach approx. 7 ft. into SMART property.

Portola SCORE Dr. Pepper Snapple Group 1,000,000.00 Oct 25, 2017

Oct 8, 2018

Let's Play Construction Grant Program per playground contract dated 10/25/2017

Nov 7, 2017 - 4 - 2:47:04 PM




Activity Start Date

Activity End Date

Description

Portola SCORE KaBOOM! 1,000,000.00 Oct 25, 2017

Oct 2, 2018

Let's Play Construction Grant Program per playground contract dated 10/25/2017

Richmond Richmond Bay Area Community Resources (BACR) 1,000,000.00 Aug 22, 2017

Jun 16, 2018

Agreement for Services Contract No. 00005039 - Provide Tennis Programming at Caliber: Beta Academy (Caliber Beta Academy)

Richmond Richmond West Contra Costa Unified School District 1,000,000.00 Aug 21, 2017

Jun 7, 2018

Use of School Property Application No. 146803-810 for City of Richmond May Valley After School Program

Richmond Richmond West Contra Costa Unified School District 1,000,000.00 Aug 31, 2017

Jun 30, 2018

Ongoing Special Services Agreement for use of School District property to conduct classes on child and neighborhood safety, conducted by the City of Richmond Police Department (aka Techs Club)

Rio Dell SCORE The County of Humboldt, its agents, officers, officials, employees and volunteers

2,000,000.00 Jul 1, 2017

Jun 30, 2018

Memorandum of Understanding between County of Humboldt and City of Rio Dell for Fiscal Year 2017-2018 - Measure Z Funds

Rio Vista NCCSIF Yolo-Solano Air Quality Management District, its officials, trustees, agents, employees, and volunteers

1,000,000.00 Dec 1, 2017

Aug 31, 2018

2017 Agreement Regarding Use of Clean Air Funds

Rocklin NCCSIF Sierra Joint Community College District 1,000,000.00 Oct 13, 2017

Oct 14, 2017

Agreement to Provide Facilities and Services for the Rocklin Mini Maker Faire 2017 dated 9/12/17

Rohnert Park

REMIF City of Santa Rosa, its officers, agents, employees and volunteers

1,000,000.00 Aug 21, 2017

Dec 31, 2017

Use of Santa Rosa Police Department Zero Motorcycles for training purposes by the Rohnert Park Department of Public Safety Motor Officers

Rohnert Park

REMIF The State of California, the Trustees of the California State University, Sonoma State University and its Auxiliaries, its officers, agents, employees, and volunteers

1,000,000.00 Aug 10, 2017

Aug 10, 2017

Special Event Lease Agreement for City of Rohnert Park Mayors event

Roseville Roseville City of Sacramento, its officials, employees, and volunteers

1,000,000.00 Jul 31, 2017

Aug 1, 2020

License Agreement dated 7/31/17 for use of bus parking slots #7 and #8 on the dates of the Sacramento Kings home games during preseason, regular season and playoffs of the 2017-2018, 2018-2019, and 2019-2020 seasons of the National Basketball Association

San Leandro San Leandro

County of Alameda, its Board of Supervisors, the individual members thereof, and all County officers, agents, employees, volunteers, and representatives

1,000,000.00 Jul 1, 2017

Jun 30, 2018

County of Alameda Standard Services Agreement: Health and Wellness Services to Seniors: Public Health Services, Classes, and Events

San Leandro San Leandro

Cummins Pacific, LLC 1,000,000.00 Oct 5, 2017

Oct 5, 2017

Liability Waiver and Indemnification Agreement dated October 3, 2017 for use of 14775

Nov 7, 2017 - 5 - 2:47:04 PM




Activity Start Date

Activity End Date

Description

Wicks Boulevard, San Leandro, CA and associated utilities, parking lot, and other accommodations (collectively referred to as the "Facility") for police tactical training

San Rafael San Rafael

B.P.O.E. San Rafael Elks Lodge #1108 1,000,000.00 Aug 22, 2017

Aug 22, 2017

Facility Rental Agreement for use of the facility "Maple Lawn" for San Rafael City Hall Meeting


Certificate holder, as owner, Harvest Properties, Inc., as property manager, and their respective agents, members, partners, employees, officers, directors and mortgagees

1,000,000.00 Oct 19, 2017

Oct 19, 2017

BioMarin San Rafael Campus Conference Facility and Mahon Creek Park Application for Temporary Use by Nontenant Users for Latino Leadership Task Force Meeting


San Rafael City Schools and its Board of Education

1,000,000.00 Sep 20, 2017

Sep 20, 2017

Application and Agreement for use of School Facilities and Grounds for Community meeting with Councilmember Kate Colin

Santa Rosa Santa Rosa

BlueLine Rental, LLC 1,000,000.00 Oct 27, 2017

Dec 1, 2017

GSA Contract #GS-21F-0095X for rental of a water truck from BlueLine. Truck will be used for transferring water/water system flushing. It will be stored at the Utilities Field Office, 35 Stony Point Road


Sonoma County Community Development Commission, Successor Agency for the Sonoma County Community Redevelopment Agency and the County of Sonoma, their officers, agents and employees

1,000,000.00 Sep 16, 2017

Oct 14, 2017

Sonoma County Community Commission Roseland Village Neighborhood Center Application for Temporary Use Permit: Roseland Community Parks Community Planning events


Sonoma Land Trust and Gilardi & Jacobsen AG Services, Inc., its agents and employees

2,000,000.00 Aug 31, 2017

Apr 30, 2018

Acceptance of Biosolids and Land Application on Assessor's Parcel No. 068-140-015

Sebastopol REMIF Sebastopol Union School District 1,000,000.00 Sep 12, 2017

Sep 12, 2017

Application and Permit for Use of School Facilities for City Hall Meeting

Sebastopol REMIF Sebastopol Union School District 1,000,000.00 Oct 17, 2017

Nov 14, 2017

Use of School Facilities for City Council/Planning Commission/Town Hall Meetings

Sebastopol REMIF Sebastopol Union School District 1,000,000.00 Oct 18, 2017

Jun 30, 2018

Use of School Facilities Agreement for City Council Meetings, Town Halls, and Subcommittee Meetings

Sebastopol REMIF The County of Sonoma, its officers, agents, employees

1,000,000.00 Oct 24, 2017

Nov 28, 2017

City Council and Planning Commission meetings on October 24, 2017, November 1, 2017, November 7, 2017, November 21, 2017 and November 28, 2017

Sebastopol REMIF The County of Sonoma, its officers, agents, employees

1,000,000.00 Nov 5, 2017

Nov 5, 2017

Community Gratitude Open House November 5, 2017

Stockton Stockton WTM Glimcher LLC 2,000,000.00 Sep 1, 2017

Aug 31,

Speciality Lease Agreement Weberstown Mall for use by

Nov 7, 2017 - 6 - 2:47:04 PM




Activity Start Date

Activity End Date

Description

2018 Stockton Police Department as a satellite office.

Sunnyvale Sunnyvale Google, Inc. and CBRE, Inc. 2,000,000.00 Oct 23, 2017

Oct 23, 2018

Agreement for use of 246 Caspian Drive and 1325 Geneva Drive for Police Canine Training exercises

Sunnyvale Sunnyvale SPF Mathilda LLC, JP Morgan Investment Management, RiverRock Real Estate Group

2,000,000.00 Jul 1, 2017

Jun 30, 2037

Declaration of Covenants, Conditions, and Restrictions and Reciprocal Easement Agreement (Downtown Sunnyvale Parking Structures) required by agreement for public parking spaces

Ukiah REMIF Savings Bank of Mendocino County 1,000,000.00 Oct 22, 2017

Oct 22, 2017

Agreement for use of parking lot for 3 on 3 Basketball Tournament (youth and adult)

Ukiah REMIF State of California, the District Agricultural Association, County Fair, the County in which the County Fair is located, Lessor/Sublessor if fair site is leased/subleased, Citrus Fruit Fair, California Exposition and State Fair, or Entities (public or non-profit) operating California designated agricultural fairs, their directors, officers, agents, servants, and employees

1,000,000.00 Oct 21, 2017

Oct 21, 2017

Agreement No. 17-70 dated 9/6/17: PumpkinFest Parade staging in main parking lot and Midway area of Ukiah Fairgrounds

Ukiah REMIF Ukiah Unified School District, its officers and employees

1,000,000.00 Aug 27, 2017

Dec 17, 2017

Agreement for use of gymnasium for African Drum Class


1,000,000.00 Sep 11, 2017

Nov 27, 2017

Agreement for use of gymnasium for Dance Classes


1,000,000.00 Nov 27, 2017

Mar 23, 2018

Use of Gymnasium for Youth Basketball League


1,000,000.00 Nov 27, 2017

Mar 25, 2018

Agreement of use of Gymnasium for Youth Basketball League


1,000,000.00 Nov 27, 2017

Mar 25, 2018

Use of Gymnasium for Youth Basketball League


1,000,000.00 Nov 28, 2017

Mar 25, 2018

Agreement for use of Gymnasium for Youth Basketball League


1,000,000.00 Jan 13, 2018

Mar 25, 2018

Agreement for use of Gymnasium for Youth Basketball League

Vacaville Vacaville Mission National Bank 5,000,000.00 Sep 20, 2017

Sep 20, 2027

Equipment Lease-Purchase Agreement for: Utilities Dump Truck, Ford Service Truck and Brown Bear Tractor

Vacaville Vacaville MissionNationalBank

5,000,000.00 Apr 19, 2017

Apr 19, 2027

Equipment Lease-Purchase Agreement dated April 19, 2017 for one (1) Multi-Conductor Lamp

Nov 7, 2017 - 7 - 2:47:04 PM




Activity Start Date

Activity End Date

Description

II TV Van

Vacaville Vacaville San Juan Unified School District 1,000,000.00 Aug 11, 2017

Jun 7, 2018

San Juan Unified School District Services & Visions in Education Agreement for Enrichment classes for Visions in Education (VIE) Home School Students

Vacaville Vacaville Sunrise Palace Inc. and Owner(s) 1,000,000.00 Feb 16, 2018

Feb 16, 2018

Fire Department Awards Ceremony

Vallejo Vallejo The State of California, the Trustees of the California State University, California State University, Cal Maritime and their employees, officers, directors, volunteers and agents

1,000,000.00 Nov 9, 2017

Nov 9, 2017

Facilities Use Agreement by Vallejo City Manager's Office for Interviews

Vallejo Vallejo United States of America by the Secretary of the Navy

3,000,000.00 Oct 1, 2017

Sep 30, 2018

License for NonFederal use of Department of the Navy Real Property: Authorize Licensee to perform vegetation management on the Licensed Premises known as the Marine Corps Firing Range, Parcel XIX, at the Former Mare Island Naval Shipyard - License Contract No. N4769217RP17P12

Weed SCORE Community First National Bank and/or its assigns

1,000,000.00 Aug 15, 2017

Aug 15, 2027

Master Equipment Lease Purchase Agreement WEE2017-08E dated 8/15/2017 for financing One (1) New Rosenbauer Pumper on Commander Chassis and Associated Equipment

Weed SCORE Pinnacle Public Finance, Inc. 1,000,000.00 Aug 15, 2017

Aug 15, 2027

Master Equipment Lease Purchase Agreement dated 8/15/17 for one (1) new Rosenbauer Pumper on Commander Chassis and Associated Equipment

West Sacramento

YCPARMIA San Juan Unified School District, its directors, officers, agents, employees and guests

1,000,000.00 Aug 29, 2017

Jun 7, 2018

Visions in Education Charter School Service Agreement

Winters YCPARMIA Winters Joint Unified School District, its elected or appointed officials, employees, agents and volunteers

2,000,000.00 Nov 11, 2017

Feb 25, 2018

Facilities Use Application for us of: Winters Middle School, Shirley Rominger Intermediate School, Waggoner Elementary and Winters High School basketball courts for Youth Co-Ed Basketball Program

Woodland YCPARMIA Woodland Biomass Power, Ltd., and its affiliates

1,000,000.00 Sep 13, 2017

Sep 13, 2027

Fuel Supply Company Acknowledgement dated 9/13/17

YCPARMIA YCPARMIA State of California, 40th District Agricultural Associations, County Fair, the County in which the County Fair is located, Lessor/Sublessor if fair site is leased/subleased, Citrus Fruit Fair, or California Exposition and State Fair, their director, officers, agents, servants, and employees are made additional insured, but

1,000,000.00 Aug 14, 2017

Aug 20, 2017

For activities held at the Yolo County Fairgrounds during the County Fair under the sponsorship of any of the member entities of YCPARMIA, (reference agreements MEB17-3050, MEB17-3043, MWB17-3057, LBC17-1001,

Nov 7, 2017 - 8 - 2:47:04 PM




Activity Start Date

Activity End Date

Description

only insofar as the operations under this contract are concerned

OS17-4022)

Yuba City NCCSIF Sysco Corporation, its subsidiaries, affiliates and divisions

4,000,000.00 Sep 26, 2017

Jun 30, 2018

Trailer Lease Agreement for 28' multi-temp trailer for future emergency use

Yuba City NCCSIF Yuba City Downtown Business Association 1,000,000.00 Dec 9, 2017

Dec 9, 2017

Vendor Application Agreement for Yuba City Youth Commission Christmas Stroll event

Summary 160,100,000.00

Nov 7, 2017 - 9 - 2:47:04 PM

Back to Agenda


AGENDA BILL

ITEM: 2 TITLE: FINANCIAL REPORT OF CJPRMA AS OF JUNE 30, 2017

MEETING: 11/16/17

GENERAL MANAGER:


Approval of the financial report as of June 30, 2017.


This item addresses Strategic Goal 1, Employ Customizable Products and Services to be Competitive. Item Explanation:

Attached is the financial report as of June 30, 2017. Staff recommends that the financial reports be approved.

Fiscal Impact:

None Exhibits:

1. Financial report as of June 30, 2017

System: 11/8/2017 1:20:05 PM California Joint Powers Page: 1User Date: 6/30/2017 VENDOR CHECK REGISTER REPORT User ID: LOLA Payables Management

Ranges: From: To: From: To: Check Number First Last Check Date 6/1/2017 6/30/2017 Vendor ID First Last Checkbook ID First Last Vendor Name First Last

Sorted By: Check Number

* Voided Checks

Check Number Vendor ID Vendor Check Name Check Date Checkbook ID Audit Trail Code Amount --------------------------------------------------------------------------------------------------------------------------------- 20406 CITI CARDS CITI CARDS 6/5/2017 BOA CKG PMCHK00000687 $1,875.94 20407 ADP01 ADP, LLC 6/13/2017 BOA CKG PMCHK00000688 $266.14 20408 AFLAC01 AFLAC 6/13/2017 BOA CKG PMCHK00000688 $33.78 20409 AKIL01 LUCRETIA AKIL 6/13/2017 BOA CKG PMCHK00000688 $44.41 20410 ALLIED01 ALLIED ADMINISTRATORS 6/13/2017 BOA CKG PMCHK00000688 $897.24 20411 ANGELO01 ANGELO, KILDAY & KILDUFF, LLP 6/13/2017 BOA CKG PMCHK00000688 $333.00 20412 AQUA01 AQUACHILL 6/13/2017 BOA CKG PMCHK00000688 $42.61 20413 AT&T06 AT&T 6/13/2017 BOA CKG PMCHK00000688 $189.83 20414 AT&T07 AT&T 6/13/2017 BOA CKG PMCHK00000688 $191.22 20415 CHICO CITY OF CHICO 6/13/2017 BOA CKG PMCHK00000688 $42.86 20416 CITI CARDS CITI CARDS 6/13/2017 BOA CKG PMCHK00000688 $588.18 20417 CLARE01 CLARE COMPUTER SOLUTIONS 6/13/2017 BOA CKG PMCHK00000688 $2,955.31 20418 CONEXIS01 WAGEWORKS, INC 6/13/2017 BOA CKG PMCHK00000688 $105.00 20419 CORODATA01 CORODATA RECORDS 6/13/2017 BOA CKG PMCHK00000688 $55.90 20420 DEWALT BARRY DEWALT 6/13/2017 BOA CKG PMCHK00000688 $295.93 20421 EHRENSTROM LIZ EHRENSTROM 6/13/2017 BOA CKG PMCHK00000688 $207.99 20422 FAIRFIELD CITY OF FAIRFIELD 6/13/2017 BOA CKG PMCHK00000688 $2,563.60 20423 FAST002 FASTSIGNS 6/13/2017 BOA CKG PMCHK00000688 $35.47 20424 FEDEX01 FEDEX 6/13/2017 BOA CKG PMCHK00000688 $85.18 20425 FERGUSON01 MARK FERGUSON 6/13/2017 BOA CKG PMCHK00000688 $117.70 20426 FREDIANI LYNETTE FREDIANI 6/13/2017 BOA CKG PMCHK00000688 $172.75 20427 GEARY,SHEA, O'D GEARY, SHEA, O'DONNELL 6/13/2017 BOA CKG PMCHK00000688 $1,313.50 20428 GIBBONS GIBBONS & CONLEY 6/13/2017 BOA CKG PMCHK00000688 $18,772.86 20429 GIVE001 GIVE SOMETHING BACK 6/13/2017 BOA CKG PMCHK00000688 $153.64 20430 GREAT01 GREATAMERICA FIN SVCS 6/13/2017 BOA CKG PMCHK00000688 $296.48 20431 ICMA01 ICMA RETIREMENT TRUST - 457 6/13/2017 BOA CKG PMCHK00000688 $2,817.38 20432 LEXIS LEXIS NEXIS 6/13/2017 BOA CKG PMCHK00000688 $400.00 20433 LIV SANITATION LIVERMORE SANITATION, INC. 6/13/2017 BOA CKG PMCHK00000688 $1,217.51 20434 LIVER01 CITY OF LIVERMORE 6/13/2017 BOA CKG PMCHK00000688 $406.08 20435 LOOM001 TOWN OF LOOMIS 6/13/2017 BOA CKG PMCHK00000688 $1,200.00 20436 MARKET VUE 01 MARKETING VUE 6/13/2017 BOA CKG PMCHK00000688 $600.00 20437 MIRAG01 MIRAGLIA CATERING 6/13/2017 BOA CKG PMCHK00000688 $826.02 20438 ONLINE RISK01 ONLINE RISK SOLUTIONS 6/13/2017 BOA CKG PMCHK00000688 $2,500.00 20439 ORKIN01 ORKIN 6/13/2017 BOA CKG PMCHK00000688 $126.88 20440 OTIS01 OTIS ELEVATOR COMPANY 6/13/2017 BOA CKG PMCHK00000688 $4,050.94 20441 PERS03 CAL PERS 6/13/2017 BOA CKG PMCHK00000688 $8,714.60 20442 PIAZZISI ELENA PIAZZISI 6/13/2017 BOA CKG PMCHK00000688 $149.96 20443 PINS01 PINS 6/13/2017 BOA CKG PMCHK00000688 $9,805.50 20444 PRIME MECHANICA PRIME MECHANICAL 6/13/2017 BOA CKG PMCHK00000688 $337.00 20445 QUIAMBAO CECILIA A. QUIAMBAO 6/13/2017 BOA CKG PMCHK00000688 $979.89 20446 RABIN M.D. ARNOLD R. RABIN, M.D. 6/13/2017 BOA CKG PMCHK00000688 $2,460.00 20447 RAWE01 DAVID RAWE 6/13/2017 BOA CKG PMCHK00000688 $115.56 20448 REDDING CITY OF REDDING 6/13/2017 BOA CKG PMCHK00000688 $68,298.31 20449 RICOH02 RICOH USA INC 6/13/2017 BOA CKG PMCHK00000688 $1,982.31 20450 SIEMENS SIEMENS INDUSTRY, INC. 6/13/2017 BOA CKG PMCHK00000688 $494.00 20451 SMALL01 SMALL BUSINESS BENEFIT 6/13/2017 BOA CKG PMCHK00000688 $120.40 20452 SONITR01 SONITROL 6/13/2017 BOA CKG PMCHK00000688 $1,012.50 20453 STAND002 STANDARD INSURANCE CO 6/13/2017 BOA CKG PMCHK00000688 $855.86 20454 STATE01 STATE COMPENSATION 6/13/2017 BOA CKG PMCHK00000688 $247.75 20455 TELE01 TPX COMMUNICATIONS 6/13/2017 BOA CKG PMCHK00000688 $1,718.23 20456 TRUPOVNIEKS ASTRIDA TRUPOVNIEKS 6/13/2017 BOA CKG PMCHK00000688 $164.05 20457 VANG01 VANGUARD CLEANING SYSTEMS, INC 6/13/2017 BOA CKG PMCHK00000688 $634.00 20458 VAUGHAN KRISTEN VAUGHAN 6/13/2017 BOA CKG PMCHK00000688 $69.20 20459 VERIZ01 VERIZON WIRELESS 6/13/2017 BOA CKG PMCHK00000688 $230.24 20460 VISTA GRANDE VISTA GRANDE LANDSCAPE MGMT 6/13/2017 BOA CKG PMCHK00000688 $755.00 20461 PARS01 US BANK PARS ACCOUNT #67460192 6/13/2017 BOA CKG PMTRX00001457 $50,000.00 20462 AQUA01 AQUACHILL 6/20/2017 BOA CKG PMCHK00000689 $42.61 20463 DIRECT01 DIRECTV 6/20/2017 BOA CKG PMCHK00000689 $160.97 20464 FEDEX01 FEDEX 6/20/2017 BOA CKG PMCHK00000689 $26.66 20465 LENAHAN LENAHAN, LEE, SLATER, AND PEAR 6/20/2017 BOA CKG PMCHK00000689 $62,787.53

/ /

System: 11/8/2017 1:20:05 PM California Joint Powers Page: 2User Date: 6/30/2017 VENDOR CHECK REGISTER REPORT User ID: LOLA Payables Management

* Voided Checks

Check Number Vendor ID Vendor Check Name Check Date Checkbook ID Audit Trail Code Amount --------------------------------------------------------------------------------------------------------------------------------- 20475 ANGELO01 ANGELO, KILDAY & KILDUFF, LLP 6/28/2017 BOA CKG PMCHK00000690 $80,495.95 20476 AT&T07 AT&T 6/28/2017 BOA CKG PMCHK00000690 $291.94 20477 GIVE001 GIVE SOMETHING BACK 6/28/2017 BOA CKG PMCHK00000690 $253.92 20478 GREAT01 GREATAMERICA FIN SVCS 6/28/2017 BOA CKG PMCHK00000690 $353.30 20479 ICMA01 ICMA RETIREMENT TRUST - 457 6/28/2017 BOA CKG PMCHK00000690 $1,658.69 20480 LIVER01 CITY OF LIVERMORE 6/28/2017 BOA CKG PMCHK00000690 $755.26 20481 MARSH01 R. J. MARSHBURN & ASSOC 6/28/2017 BOA CKG PMCHK00000690 $5,000.00 20482 MAYALL HURLEY LAW OFFICES OF MAYALL HURLEY 6/28/2017 BOA CKG PMCHK00000690 $1,313.50 20483 MIDLAND01 MIDLAND NATIONAL 6/28/2017 BOA CKG PMCHK00000690 $86.24 20484 RICOH02 RICOH USA INC 6/28/2017 BOA CKG PMCHK00000690 $2,596.46 20485 STAND002 STANDARD INSURANCE CO 6/28/2017 BOA CKG PMCHK00000690 $855.86 -------------------- Total Checks: 80 Total Amount of Checks: $387,653.26 ====================

ASSETSCurrent Assets Cash 1,053,839$ Investments 73,801,816 Total Cash and Investments 74,855,654

Interest Receivable 391,744 Accounts Receivable 73,191 Prepaid Insurance - Other Prepaids 547,482 Deposits - Total Current Assets 75,868,072

Capital Assets Building & Improvements 2,821,324 Land 548,250 Equipment 385,393 Office Furniture 151,284 Accumulated Depreciation (818,374) Capital Assets, Net 3,087,877 Total Assets 78,955,949

DEFERRED OUTFLOWS OF RESOURCESDeferred Outflows Related to Pensions 248,530

LIABILITIESCurrent Liabilities Unearned Contributions 455,261 Accounts Payable 28,126 Accrued Liabilities 147,488 Accrued Employee Benefits 7,371 Reserve for losses - Liability Current 13,985,447 Deferred Revenue 73,143 Total Current Liabilities 14,696,836

Noncurrent Liabilities Reserve for Loss-Liability 27,387,349 Net OPEB obligation 98,577 Net pension liability 809,773 Total Noncurrent Liabilities 28,295,699 Total Liabilities 42,992,535

DEFERRED INFLOWS OF RESOURCESDeferred Inflows Related to Pensions 82,819

NET POSITION Current Year Earnings 1,143,841 Retained Earnings-Liability 21,555,036 Retained Earnings-Property 63,963 Retained Earnings-Boiler & Machinery 8,880 Retained Earnings-Auto Physical Damage (13,763) Excess Loss Fund 16,156,772 Member Refunds - Liability (2,785,603)

TOTAL NET POSITION 36,129,125$

CJPRMASTATEMENT OF NET POSITION

As of June 30, 2017

June % to YTD % to Net Income Net Income

Operating Revenues Member Contributions 1,120,671 29.20 13,243,708 1,157.83 PY Member Contributions - - - 0.00 Fees Earned 924 0.02 11,000 0.96 Appraisal Fees - 0.00 - 0.00 Total Operating Revenues 1,121,595 29.22 13,254,708 1,158.79

Claim Expense Settlements Paid 71,001 1.85 425,897 37.23 Settlement Reimbursements (61,468) (1.60) (425,897) (37.23) Current Year Loss Provision 1,830,520 47.70 10,080,520 881.29 Loss Reserve Adjustment (Prior Year) (5,532,481) (144.16) (5,532,481) (483.68) Insurance Premiums 485,243 12.64 5,163,042 451.38 PY Premium Adj - 0.00 13,114 1.15 Total Claim Expense (3,207,186) (83.57) 9,724,195 850.14

Gross Profit (Loss) 4,328,781 112.79 3,530,513 308.65

Operating Expenses Salaries 82,081 2.14 598,015 52.28 PERS Contributions 9,083 0.24 97,766 8.55 Health Benefits 10,896 0.28 124,042 10.84 Life Insurance 483 0.01 2,725 0.24 OPEB Expense 88,601 2.31 88,601 7.75 Disability Insurance 1,315 0.03 7,526 0.66 Office Liability/Property Insurance 1,202 0.03 15,666 1.37 General Manager - Wellness Program 242 0.01 1,835 0.16 Auto Allowance 1,615 0.04 12,231 1.07 Payroll Tax Expense 1,187 0.03 8,791 0.77 Payroll Services 349 0.01 4,689 0.41 Admin - Training/Conferences/Travel/Mtgs 808 0.02 20,793 1.82 GASB 68 Net Pension Expense 113,791 2.96 113,791 9.95 Risk Mgmt -Conferences/Travel/Meetings 37 0.00 11,488 1.00 Risk Mgmt - Training & Supplies 5,000 0.13 26,996 2.36 Temporary Services - 0.00 - 0.00 Actuarial Services - 0.00 13,500 1.18 MMSEA Reporting 625 0.02 3,125 0.27 Audit - Claims 31 0.00 28,586 2.50 Audit - Financial - 0.00 21,815 1.91 Web Site Maintenance 3,160 0.08 5,360 0.47 Info Systems Technical Support 2,559 0.07 23,010 2.01 Legal - Board Counsel - G&A 8,021 0.21 30,130 2.63 Legal - Board Counsel - Claims - 0.00 - 0.00 Other Claim Expenses - 0.00 - 0.00 Legal - Outside - G&A - 0.00 - 0.00 Treasurer Fees 600 0.02 3,600 0.31

CJPRMASTATEMENT OF OPERATIONS

For the Twelve Months Ending June 30, 2017All Departments




Taxes & Assesments - 0.00 10,337 0.90 Other Consultants - 0.00 5,296 0.46 Other Consultants - Property - 0.00 - 0.00 Claims Adjustment Fee - Property - 0.00 - 0.00 Bond Premiums 580 0.02 6,905 0.60 Copying/Printing - 0.00 252 0.02 Records Management 108 0.00 714 0.06 Computer H/W & S/W Expensed 431 0.01 6,475 0.57 Depreciation 9,277 0.24 111,319 9.73 Dues/Memberships 450 0.01 2,713 0.24 CAJPA Accreditation - 0.00 - 0.00 Equipment Rental 2,639 0.07 25,672 2.24 Maintenance & Repair - Equipment 337 0.01 8,879 0.78 Capital Outlay - 0.00 - 0.00 Furniture & Equipment Expensed - 0.00 3,435 0.30 Office Rent - 0.00 - 0.00 Utilities - CJPRMA (21,413) (0.56) 9,885 0.86 CAM - CJPRMA 16,516 0.43 16,516 1.44 Utilities - Davita/Golden Gate 28,232 0.74 62,965 5.50 CAM - Davita/Golden Gate (12,876) (0.34) 48,202 4.21 Office Supplies 854 0.02 6,071 0.53 Janitorial Services & Supplies 535 0.01 7,090 0.62 Postage/Shipping 16 0.00 1,416 0.12 Publications/Online Subscriptions (8,202) (0.21) 6,514 0.57 Promotion/Advertising - 0.00 - 0.00 Telecommunications 2,767 0.07 32,491 2.84 Personnel Recruitment - 0.00 - 0.00 Workers' Comp. Insurance 248 0.01 4,170 0.36 Annual Meeting 15,920 0.41 20,487 1.79 Board Meeting Expense 409 0.01 14,834 1.30 Gen'l Liability - Training 1,916 0.05 3,000 0.26 BOD - Brd Mtg Travel Expense 499 0.01 5,380 0.47 BOD - Conferences 1,693 0.04 21,574 1.89 Asset Management Fees - Chandler 6,583 0.17 81,650 7.14 Risk Mgmt Info System 6,688 0.17 92,255 8.07 Bank Charges 199 0.01 10,864 0.95 Risk Control Online Service 5,460 0.14 91,750 8.02 Other Expenses 500 0.01 573 0.05 Contingency Fund - 0.00 - 0.00 Allocated G&A - Liability (924) (0.02) (11,000) (0.96) Allocated G&A - Property 837 0.02 10,000 0.87 Allocated G&A - Boiler & Machinery - 0.00 - 0.00 Allocated G&A - Auto Physical Damage 87 0.00 1,000 0.09 Total Expense 392,052 10.22 1,983,766 173.43

Net Operating Income (Loss) 3,936,729 102.58 1,546,747 135.22




Investment Income Interest Income - Liability 116,618 3.04 1,421,333 124.26 Realized Gain on Investment 9,545 0.25 528,815 46.23 Unrealized Gain on Investment (275,792) (7.19) (2,618,413) (228.91) Total Investment Income (149,630) (3.90) (668,265) (58.42)

Other Income/ Expense Gain on disposal of asset - 0.00 - 0.00 Other Income - 0.00 300 0.03 Rental & CAM Income 50,739 1.32 265,059 23.17 Utilities Income - Davita/Golden Gate - 0.00 - 0.00

50,739 1.32 265,359 23.20

Net Income (Loss) 3,837,838 100.00 1,143,841 100.00

June % to YTD % toNet Income Net Income

Operating Revenues Member Contributions 855,916 22.04 10,247,643 882.27 Fees Earned - 0.00 - 0.00 Total Operating Revenues 855,916 22.04 10,247,643 882.27

Claim Expense Settlement Reimbursements - 0.00 - 0.00 Current Year Loss Provision 1,830,520 47.14 10,080,520 867.88 Loss Reserve Adjustment (Prior Year) (5,532,481) (142.46) (5,532,481) (476.32) Insurance Premiums 184,333 4.75 2,162,425 186.17 Total Claim Expense (3,517,628) (90.58) 6,710,464 577.74

Gross Profit (Loss) 4,373,544 112.62 3,537,179 304.53

Operating Expenses Salaries 82,081 2.11 598,015 51.49 PERS Contributions 9,083 0.23 97,766 8.42 Health Benefits 10,896 0.28 124,042 10.68 Life Insurance 483 0.01 2,725 0.23 OPEB Expense 88,601 2.28 88,601 7.63 Disability Insurance 1,315 0.03 7,526 0.65 Office Liability Insurance 1,202 0.03 15,666 1.35 General Manager - Wellness Program 242 0.01 1,835 0.16 Auto Allowance 1,615 0.04 12,231 1.05 Payroll Tax Expense 1,187 0.03 8,791 0.76 Payroll Services 349 0.01 4,689 0.40 Admin - Training/Conferences/Travel/Mtgs 808 0.02 20,793 1.79 GASB 68 Net Pension Expense 113,791 2.93 113,791 9.80 Risk Mgmt - Meetings & Travel 37 0.00 11,488 0.99 Risk Mgmt - Training & Materials 5,000 0.13 26,996 2.32 Temporary Services - 0.00 - 0.00 Actuarial Services - 0.00 13,500 1.16 MMSEA Reporting 625 0.02 3,125 0.27 Audit - Claims 31 0.00 28,586 2.46 Audit - Financial - 0.00 21,815 1.88 Web Site Maintenance 3,160 0.08 5,360 0.46 Info Systems Technical Support 2,559 0.07 23,010 1.98 Legal - Board Counsel - G&A 8,021 0.21 30,130 2.59 Legal - Board Counsel - Claims - 0.00 - 0.00 Other Claim Expenses - 0.00 - 0.00 Legal - Outside - G&A - 0.00 - 0.00 Treasurer Fees 600 0.02 3,600 0.31 Taxes & Assesments - 0.00 10,337 0.89 Other Consultants - 0.00 5,296 0.46 Bond Premiums 580 0.01 6,905 0.59 Copying/Printing - 0.00 252 0.02 Records Management 108 0.00 714 0.06


For the Twelve Months Ending June 30, 2017Liability




Computer H/W & S/W Expensed 431 0.01 6,475 0.56 Depreciation 9,276 0.24 111,319 9.58 Dues/Memberships 450 0.01 2,713 0.23 CAJPA Accreditation - 0.00 - 0.00 Equipment Rental 2,639 0.07 25,672 2.21 Maintenance & Repair - Equipment 337 0.01 8,879 0.76 Capital Outlay - 0.00 - 0.00 Furniture & Equipment Expensed - 0.00 3,435 0.30 Office Rent - 0.00 - 0.00 Utilities -CJPRMA (21,413) (0.55) 9,885 0.85 CAM - CJPRMA 16,516 0.43 16,516 1.42 Utilities - Davita/Golden Gate 28,232 0.73 62,965 5.42 CAM - Davita/Golden Gate (12,876) (0.33) 48,202 4.15 Office Supplies 854 0.02 6,071 0.52 Janitorial Service & Supplies 535 0.01 7,090 0.61 Postage/Shipping 16 0.00 1,416 0.12 Publications/Online Subscriptions (8,202) (0.21) 6,514 0.56 Promotion/Advertising - 0.00 - 0.00 Telecommunications 2,767 0.07 32,491 2.80 Personnel Recruitment - 0.00 - 0.00 Workers' Comp. Insurance 248 0.01 4,170 0.36 Annual Meeting 15,920 0.41 20,487 1.76 Board Meeting Expense 409 0.01 14,834 1.28 Gen'l Liability - Training 1,916 0.05 3,000 0.26 BOD - Brd Mtg Travel Expense 499 0.01 5,380 0.46 BOD - Conferences 1,693 0.04 21,574 1.86 Asset Management Fees - Chandler 6,583 0.17 81,650 7.03 Risk Mgmt Info System 6,688 0.17 92,255 7.94 Bank Charges 199 0.01 10,864 0.94 Risk Control Online Service 5,460 0.14 91,750 7.90 Other Expenses 500 0.01 573 0.05 Contingency Fund - 0.00 - 0.00 Allocated G&A - Liability (924) (0.02) (11,000) (0.95) Total Expense 391,127 10.07 1,972,766 169.85

Net Operating Income (Loss) 3,982,417 102.55 1,564,413 134.69

Investment Income Interest Income 116,618 3.00 1,421,333 122.37 Realized Gain on Investment 9,545 0.25 528,815 45.53 Unrealized Gain on Investment (275,792) (7.10) (2,618,413) (225.43)

Total Investment Income (149,630) (3.85) (668,265) (57.53)




Other Income/Expense Gain on disposal of asset - 0.00 - 0.00 Other Income - 0.00 300 0.03 Rent & CAM Income 50,739 1.31 265,059 22.82 Utilities Income - Davita/Golden Gate - 0.00 - 0.00

50,739 1.31 265,359 22.85

Net Income (Loss) 3,883,525 100.00 1,161,507 100.00


Operating Revenues Member Contributions - Property 196,827$ 0.00 2,180,874$ 0.00 Member Contributions - Environ Pollution 15,665 0.00 187,991 0.00 PY Member Contributions - Property - 0.00 - 0.00 Loss Adjustment Contributions - 0.00 - 0.00 Fees Earned 837 0.00 10,000 0.00 Other Income - 0.00 - 0.00 Total Operating Revenues 213,329 0.00 2,378,865 0.00

Claim Expense Settlements Paid 68,298 0.00 178,029 0.00 Settlement Reimbursements (61,468) 0.00 (178,029) 0.00 Insurance Premiums - Property 231,829 0.00 2,185,741 0.00 Insurance Premiums - Environ Pollution 15,665 0.00 187,991 0.00 PY Ins Premium Adj - 0.00 - 0.00 Total Claim Expense 254,324 0.00 2,373,732 0.00

Gross Profit (Loss) (40,994) 0.00 5,133 0.00

Operating Expenses Claims Adjustment Fee - 0.00 - 0.00 Allocated G&A - Property 837 0.00 10,000 0.00 Other Consultants - Property - 0.00 - 0.00 Total Operating Expenses 837 0.00 10,000 0.00

Net Income (Loss) (41,831)$ 100.00 (4,867)$ 100.00


For the Twelve Months Ending June 30, 2017Property


Operating Revenues Member Contributions 52,263$ 0.00 627,200$ 0.00 PY Member Contributions - - - 0.00 Fees Earned 87 0.00 1,000 0.00 Total Operating Revenues 52,350 0.00 628,200 0.00

Claim Expense Settlements Paid - APD 2,702 0.00 247,868 0.00 Settlement Reimbursements - APD - 0.00 (247,868) 0.00 Insurance Premiums 53,416 0.00 626,885 0.00 PY Ins Premium Adj - 0.00 13,114 0.00 Total Claim Expense 56,118 0.00 639,999 0.00

Gross Profit (Loss) (3,768) 0.00 (11,799) 0.00

Operating Expenses Allocated G&A - Auto Physical Damage 87 0.00 1,000 0.00 Total Operating Expenses 87 0.00 1,000 0.00

Operating Income (Loss) (3,855) 0.00 (12,799) 0.00

Net Income (Loss) (3,855)$ 100.00 (12,799)$ 100.00


For the Twelve Months Ending June 30, 2017Auto Physical Damage

Annual Budget Budget Expense % of VarianceFY 16/17 YTD YTD Annual Budget under/ (over)

100% 100%

Personnel Salaries 618,000$ 618,000$ 598,015$ 96.8% 19,985$ Auto Allowance 12,000 12,000 12,231 101.9% (231) PERS Contributions 100,900 100,900 97,766 96.9% 3,134 Health Benefits 125,280 125,280 124,042 99.0% 1,238 Life Insurance 4,000 4,000 2,725 68.1% 1,275 OPEB Expense 35,000 35,000 88,601 253.1% (53,601) Disability Insurance 7,300 7,300 7,526 103.1% (226) Workers' Comp. Insurance 6,000 6,000 4,170 69.5% 1,830 Payroll Tax Expense 9,200 9,200 8,791 95.6% 409 General Manager - Wellness Program 1,800 1,800 1,835 101.9% (35) Total Personnel Expenses 919,480 919,480 945,702 102.9% (26,222)

Maintenance & Operation Utilities - CJPRMA 15,000 15,000 9,885 65.9% 5,115 CAM - CJPRMA 17,000 17,000 16,516 97.2% 484 Utilities - Davita/Golden Gate 75,000 75,000 62,965 84.0% 12,035 CAM - Davita/Golden Gate 58,000 58,000 48,202 83.1% 9,798 Equipment Rental 25,000 25,000 25,672 102.7% (672) Maintenance & Repair - Equipment 3,500 3,500 8,879 253.7% (5,379) Office Liability/Property Insurance 17,000 17,000 15,666 92.2% 1,334 Bond Premiums 7,000 7,000 6,905 98.6% 95 Payroll Services 4,500 4,500 4,689 104.2% (189) Tuition Reimbursement 500 500 - 0.0% 500 Office Supplies 8,000 8,000 6,071 75.9% 1,929 Janitorial Service & Supplies 7,000 7,000 7,090 101.3% (90) Telecommunications 18,000 18,000 32,491 180.5% (14,491) Postage/Shipping 3,000 3,000 1,416 47.2% 1,584 Personnel Recruitment 2,000 2,000 - 0.0% 2,000 Dues/Memberships 3,000 3,000 2,713 90.4% 287 Publications/Online Subscriptions 10,000 10,000 6,514 65.1% 3,486 Copying/Printing 3,000 3,000 252 8.4% 2,748 Records Management 800 800 714 89.2% 86 Promotion/Advertising 500 500 - 0.0% 500 CAJPA Accreditation - - - 0.0% - Furniture & Equipment Expensed 8,000 8,000 3,435 42.9% 4,566 Computer H/W & S/W Expensed 10,000 10,000 6,475 64.8% 3,525 Info SystemsTechnical Support 25,000 25,000 23,010 92.0% 1,990 Web Site Maintenance 2,400 2,400 5,360 223.4% (2,960) Actuarial Services 16,000 16,000 13,500 84.4% 2,500 MMSEA Reporting 8,000 8,000 3,125 39.1% 4,875 Audit - Financial 21,250 21,250 21,815 102.7% (565) Audit - Claims 34,000 34,000 28,586 84.1% 5,414 Temporary Services 1,000 1,000 - 0.0% 1,000 Legal - Board Counsel - G&A 30,000 30,000 30,130 100.4% (130)

CJPRMAACTUAL EXPENSES VS BUDGET

For the Twelve Months Ending June 30, 2017

Annual Budget Budget Expense % of VarianceFY 16/17 YTD YTD Annual Budget under/ (over)

100% 100%

CJPRMAACTUAL EXPENSES VS BUDGET

For the Twelve Months Ending June 30, 2017

Legal - Board Counsel - Claims 70,000 70,000 103,904 148.4% (33,904) Legal - Outside - G&A 3,000 3,000 - 0.0% 3,000 Legal - Outside - Claims 1,000,000 1,000,000 1,488,743 148.9% (488,743) Other Claim Expenses 50,000 50,000 232,189 464.4% (182,189) Treasurer Fees 3,600 3,600 3,600 100.0% - Taxes & Assessments 11,000 11,000 10,337 0.0% 663 Other Consultants 5,000 5,000 5,296 105.9% (296) Admin - Conferences/Travel/Mtgs 22,000 22,000 20,793 94.5% 1,207 GASB 68 Net Pension Expense - - 113,791 0.0% (113,791) Risk Mgmt - Conferences/Travel/Mtgs 10,000 10,000 11,488 114.9% (1,488) Risk Mgmt -Training & Supplies 30,000 30,000 26,996 90.0% 3,004 Gen'l Liability - Training 12,000 12,000 3,000 25.0% 9,000 BOD - Brd Mtg Travel Exp 12,000 12,000 5,380 44.8% 6,620 BOD - Conferences 40,000 40,000 21,574 53.9% 18,426 Board Meeting Expense 15,000 15,000 14,834 98.9% 166 Annual Meeting 35,000 35,000 20,487 58.5% 14,513 Risk Control Online Serv 42,500 42,500 91,750 215.9% (49,250) Asset Management Fees 95,000 95,000 81,650 85.9% 13,350 RMIS - Support/Annual Fee 61,000 61,000 92,255 151.2% (31,255) Bank Charges 11,000 11,000 10,864 98.8% 136 Other Expenses 3,000 3,000 573 19.1% 2,427 Contingency Fund 20,000 20,000 - 0.0% 20,000 Total Maint. & Op. Expenses 1,984,550 1,984,550 2,751,581 138.7% (767,031)

Capital Outlay Capital Outlay 50,000 50,000 - 0.0% 50,000 Total Capital Outlay 50,000 50,000 - 0.0% 50,000

Subtotal 2,954,030 2,954,030 3,697,283 125.2% (743,253)

Less:Assessment Against Liability Reserve 1,120,000 1,120,000 1,824,836 162.9% (704,836) Assessment Against Interest 95,000 95,000 81,650 85.9% 13,350

Total G&A 1,739,030$ 1,739,030$ 1,790,796$ 103.0% (51,766)$

FY 2016-2017 Claim Expenses

Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 TotalsLI 4,854.41 1,649.75 7,148.89 12,876.24 18,178.88 4,892.32 8,606.94 7,603.96 13,634.17 8,297.80 9,808.32 6,352.44 103,904.12 LO 313,523.93 95,962.09 63,111.29 24,524.66 87,564.05 242,705.96 262,115.57 32,107.59 115,052.11 80,613.25 9,080.10 162,382.24 1,488,742.84 OE 4,011.20 44.25 4,875.98 210,766.59 31.39 975.43 10,788.18 - 19.59 236.69 165.25 274.56 232,189.11

322,389.54 97,656.09 75,136.16 248,167.49 105,774.32 248,573.71 281,510.69 39,711.55 128,705.87 89,147.74 19,053.67 169,009.24 1,824,836.07

SE - 93,420.03 4,650,000.00 - 2,917,911.00 5,142,303.19 1,411,596.15 - - 300,000.00 1,200,000.00 - 15,715,230.37 SR (398,653.41) - (737,164.16) (233,344.53) 45,831.86 - - (2,092,210.30) - (316,059.83) (194,109.07) (334,488.84) (4,260,198.28)

Totals (76,263.87) 191,076.12 3,987,972.00 14,822.96 3,069,517.18 5,390,876.90 1,693,106.84 (2,052,498.75) 128,705.87 73,087.91 1,024,944.60 (165,479.60) 13,279,868.16

ASSETS

OPEB Trust Investments 387,386$

NET POSITION

Total net position held in trust for OPEB 387,386$

CJPRMA

STATEMENT OF FIDUCIARY NET POSITIONAs of June 30, 2017

OPEB TRUST FUND

OPEB TRUST FUND

ADDITIONS:

Contributions to OPEB Trust 50,000$ Net Investment Income: Interest 32,746 Investment management fees (1,595)

Change in Net Position 81,151

Net Position held in trust for OPEB - beginning of year 306,236

Net Position held in trust for OPEB - end of year 387,386$

CJPRMA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONFOR THE YEAR ENDED JUNE 30, 2017

Back to Agenda


AGENDA BILL

ITEM: 3 TITLE: REPORT FROM INVESTMENT MANAGER

MEETING: 11/16/17

GENERAL MANAGER:

Recommended Actions: None. This item is being provided for information purposes only.

Strategic Direction: This item addresses Strategic Goal 1, Employ Customizable Products and Services to be Competitive and Strategic Goal 3, Foster Informed and Engaged Board Leadership.

Item Explanation: Pool investments are managed by Chandler Asset Management. The assets are held in CJPRMA’s bank custody account managed by the Bank of New York.

The investment program is divided into three parts: The Loss Payment Account, the Long Term Growth Account and the Long Term Growth/Tactical Account.

The Loss Payment Account is utilized to provide funds for operating expenses and the payment of losses. The Loss Payment Account invests in high grade securities with a maximum maturity of five years. During the quarter $8 million was added to the LAIF balance, increasing the total value of the portfolio from $3,748,897 to $11,762,986, consistent with the target allocation for the Loss Payment Account. Several securities were purchased in the Agency and Corporate sectors of the market to increase the overall maturity distribution of the strategy. The purchased securities ranged in maturity from August 2019 to June 2020. Three securities matured during the reporting period. The Loss Payment Account has sufficient funds to meet the expenditure requirements of the next six months.

Both Long Term Growth Accounts are utilized to provide long term asset growth in order to offset inflation. The maturity range of these investments is a maximum of ten years.

As of October 31, 2017, the Long Term Growth/Tactical Account was valued at $29,005,640. This was an increase of $3,697 from its valuation of $29,001,943 on July 31, 2017. Multiple securities were purchased across the Treasury, Agency, Supranational, Asset Backed, Negotiable CD, and Corporate sectors of the market to keep the portfolio structure in-line with Chandler targets. The purchased securities ranged in maturity from August 2018 to

Back to Agenda

September 2022. One security was sold and one matured to help facilitate the new holdings in the portfolio. As of October 31, 2017, the Long Term Growth Account was valued at $38,652,545. This was a decrease of $41,200 from its valuation of $38,693,745 on July 31, 2017. Two securities were purchased during the quarter, one Agency note and one Treasury note, with maturities in June 2027 and August 2027, respectively. Several securities with maturities in 2022 were sold to facilitate the new holdings in the portfolio.

The investments in all accounts comply with CJPRMA’s investment policy. Marty Cassell, of Chandler Asset Management, will be present to discuss the portfolio and our investment strategy. In addition, he will be providing an update on economic factors that have had a direct impact on the investments.

Fiscal Impact: From July 31, 2017 to October 31, 2017, the value of the investment portfolio increased by approximately $7,976,586.

Exhibits: 1. Investment Report from Chandler Asset Management dated 10/31/2017

6225 Lusk Blvd | San Diego, CA 92121 | Phone 800.317.4747 | Fax 858.546.3741 | www.chandlerasset.com

CHANDLER ASSET MAN AGEMENT

Period Ending

October 31, 2017

California Joint Powers Risk

Management Authority

Investment Report

Table of Contents

SECTION 1 Economic Update

SECTION 2 Account Profile

1

SECTION 1

Economic Update

2

Employment

Source: U.S. Department of Labor Source: US Department of Labor

0

50

100

150

200

250

300

350

MO

M C

han

ge In

(000's

)

Nonfarm Payroll (000's)

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

Unemployment Rate

Underemployment Rate (U6)

Unemployment Rate (U3)

Rate

(%

)

3

Inflation Below Fed’s Target

Source: US Bureau of Labor Statistics Source: US Bureau of Economic Analysis

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Consumer Price Index (CPI)

CPI YOY % Change

Core CPI YOY % Change

YO

Y(

%)

Ch

an

ge

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Personal Consumption Expenditures (PCE)

PCE Price Deflator YOY % Change

PCE Core Deflator YOY % Change

YO

Y(

%)

Ch

an

ge

4

Interest Rates and Yield Curves

Yield on the Two-Year Note April 2013 through April 2015

Source: Bloomberg

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

US Treasury Note Yields

2-Year

5-Year

10-Year

Yie

ld (%

)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

US Treasury Yield Curve

Oct-17

Jul-17

Oct-16

Yie

ld (%

)

5

SECTION 2

Account Profile

6

Objectives

Chandler Asset Management Performance Objectives The performance objective for the Loss Payment Account is to equal the return on a benchmark index with characteristics (duration

and sector allocation) similar to the characteristics of the Loss Payment Account.

The performance objective of the Long-Term Growth Account shall be to exceed the return on the benchmark index of five to ten

year US Government securities over a market cycle.

The performance objective of the Long-Term Growth Account (Tactical) shall be to exceed the return on the benchmark index of

the one to five year US Government securities over a market cycle.

Strategy In order to achieve these objectives, the portfolios invest in high quality fixed income securities consistent with the investment

policy and California Government Code.

Investment Objectives

The investment objectives of the California Joint Powers Risk Management Authority are first, to preserve principal; second, to

ensure liquidity; and third, to earn a return that is commensurate with the first two objectives. Funds available for investment are

segregated into three separate portfolios in order to meet the Authority's investment goals.

The Loss Payment Account

The Loss Payment Account shall be invested to match its duration to the duration of the Authority's expected claims and to

provide cash to pay losses, as they come due, and to pay the operating expenses of the Authority.

The Long Term Growth Account and the Long Term Growth Account (Tactical)

Recognizing that casualty liabilities are inflation sensitive, the Authority has established the Long Term Growth Account to

provide for long-term asset growth in order to offset potential inflation. The Long Term Growth Account (Tactical) has been

implemented to help manage the combination of extraordinary low interest rates and the intermediate risk of rates rising.

7

CJPRMA Compliance as of October 31, 2017

Category Standard Comment

Treasury IssuesMax maturity: 5 years for the Loss Payment Account; 10 years for the Long Term

Growth AccountComplies

US AgenciesMax maturity: 5 years for the Loss Payment Account; 10 years for the Long Term

Growth AccountComplies

Municipal Securities

"A" or higher by a NRSRO; 5% max issuer;

Max maturity: 5 years for Loss Payment Account; 10 years for Long Term Growth

Account

Complies

Supranationals"AA" or higher by a NRSRO; 30% maximum; 10% max issuer; Includes: IBRD; IFC,

IADB; 5 years max maturityComplies

Asset-Backed,

Mortgage-Backed Securities,

Collateralized Mortgage Obligation

"AA" rated by a NRSRO; "A" or higher issuer rating by a NRSRO; 20% maximum

combined; 5 years max maturity Complies

Banker’s Acceptances "A-1" or higher by a NRSRO; 40% maximum; 5% per issuer; 180 days max maturity Complies

Commercial Paper

"A-1" or higher by a NRSRO; "A" or higher by a NRSRO, if long term debt issued;

25% maximum; 5% per issuer; 270 days max maturity; Issuer is corp organized and

operating in the U.S. with assets in excess of $500 million

Complies

Corporate Medium Term Notes"A" or higher by a NRSRO; 30% maximum; 5% per issuer; Issued by corporation

organized and operating within U.S; 5 years max maturityComplies

Money Market Funds AAA by at least two NRSROS and SEC Registered; 20%maximum; 10% per fund Complies

Time/ Certificates of Deposits 5% per issuer; FDIC Insured or Collateralized; 3 years max maturity Complies

Negotiable CDs "A-1" or higher by a NRSRO; "A" or higher by a NRSRO, if long term debt issued;

30% maximum; 5% per isser; 3 years max maturityComplies

LAIF 20% max Complies

Derivative Securities 5% per issue; 5-year maximum Complies

Reverse Repos Prohibited Complies

Futures and Options Prohibited Complies

Guaranteed SBA Notes Prohibited Complies

Inverse Floaters, Range Notes Prohibited Complies

Interest Only Strips Prohibited Complies

Zero interest accrual Prohibited Complies

Max Per Issuer5% per issuer (excluding US government, agencies, mortgage-backed, asset

backed securities, and money market fundsComplies

The portfolio complies with state law and with the Client's investment policy, except as noted below.

General Parameters

COMPLIANCE WITH INVESTMENT POLICY

8

CJPRMA Compliance as of October 31, 2017

Modified DurationApprox. equal to duration of current claim liabilities and

operating expenses of the AuthorityComplies

Maximum Maturity 5 years Complies

% invested <1 year Enough for cashflow Complies

Modified Duration

Approx. equal to duration consistent with long term growth

and future liabilities of the Authority;

Within 80 to 120% of the benchmark

Complies

Maximum Maturity 10 years Complies

COMPLIANCE WITH INVESTMENT POLICY

Long Term Growth Account

Account Specifics Parameter

Loss Payment Account

9

Portfolio Characteristics

CJPRMA - The Loss Payment Account

10/31/2017 7/31/2017

Benchmark* Portfolio Portfolio

Average Maturity (yrs) 0.91 0.37 0.97

Modified Duration 0.89 0.35 0.87

Average Purchase Yield n/a 1.19% 1.14%

Average Market Yield 1.31% 1.27% 1.29%

Average Quality** AAA AA+/Aa1 AA+/Aa1

Total Market Value 11,762,986 3,748,897

*0-3 yr Treasury

**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.

Several securities were purchased in the Agency and Corporate sectors of the market to increase the overall maturity

distribution of the strategy. The purchased securities ranged in maturity from August 2019 to June 2020. Three

securities matured during the reporting period. Additionally, $8 million was added to the LAIF balance, increasing

the total value of the portfolio to $11.8 million, consistent with the target allocation for the Loss Payment Account.

10

ABS 0.5%

Agency 6.7%

Commercial Paper 0.8%

LAIF 70.4%

Money Market Fund FI

0.1%

US Corporate 5.1%

US Treasury 16.3%

Sector Distribution


October 31, 2017 July 31, 2017

ABS 5.1%

Agency 17.1%

Commercial Paper 2.7%

LAIF 7.3%


0.4% US Corporate

16.2%

US Treasury 51.2%

11

AAA AA A <A NR

10/31/17 0.3% 26.9% 2.1% 0.0% 70.7%

07/31/17 4.3% 80.4% 6.7% 0.0% 8.5%

Source: S&P Ratings

Quality Distribution

October 31, 2017 vs. July 31, 2017


0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

AAA AA A <A NR

10/31/2017 7/31/2017

12

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

55.00%

60.00%

65.00%

70.00%

75.00%

80.00%

0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+

10/31/2017 7/31/2017

Duration Distribution


October 31, 2017 vs. July 31, 2017

0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+

10/31/17 74.3% 4.6% 5.2% 10.8% 4.1% 1.1% 0.0% 0.0%

07/31/17 27.5% 12.2% 22.4% 34.2% 0.3% 3.4% 0.0% 0.0%

13

Investment Performance

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

12 months 2 years 3 years 5 years 10 years Since Inception

CJPRMA - The Loss Payment Account 0-3 yr Treasury*

CJPRMA - The Loss Payment Account Period Ending

October 31, 2017

Total Rate of Return

Annualized Since Inception

August 31, 1995

Annualized

3 months 12 months 2 years 3 years 5 years 10 years Since

Inception

CJPRMA - The Loss Payment Account 0.21% 0.89% 0.72% 0.69% 0.55% 1.38% 3.51%

0-3 yr Treasury 0.16% 0.57% 0.61% 0.53% 0.44% 1.03% 3.11%

*1-5 Year Govt until 7/31/01; Then 0-3Year Treasuries

Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes

interest earnings, realized and unrealized gains and losses in the portfolio.

14


CJPRMA The Long Term Growth Account (Tactical)

10/31/2017 7/31/2017






Average Quality** AAA AA/Aa1 AA/Aa1


*BAML 1-5 Yr US Treasury/Agency Index


Multiple securities were purchased across the Treasury, Agency, Supranational, Asset Backed, Negotiable CD, and

Corporate sectors of the market to keep the portfolio structure in-line with Chandler targets. The purchased securities

ranged in maturity from August 2018 to September 2022. One security was sold and one matured to help facilitate the

new holdings in the portfolio.

15

ABS 4.4%

Agency 37.8%

Commercial Paper 1.9% Money Market

Fund FI 0.7%

Supranational 3.2%

US Corporate 25.0%

US Treasury 25.2%

Negotiable CD

1.8%

Sector Distribution


October 31, 2017 July 31, 2017

ABS 7.0%

Agency 37.0%

Commercial Paper 1.9% Money Market

Fund FI 0.6%

Supranational 2.4%

US Corporate 27.3%

US Treasury 23.7%

16

AAA AA A <A NR

10/31/17 5.1% 79.3% 11.2% 0.0% 4.4%

07/31/17 7.0% 75.0% 13.8% 0.0% 4.2%

Source: S&P Ratings


October 31, 2017 vs. July 31, 2017


0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

AAA AA A <A NR

10/31/2017 7/31/2017

17

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+

CJPRMA The Long Term Growth Account (Tactical) BAML 1-5 Yr US Treasury/Agency Index



Portfolio Compared to the Benchmark as of October 31, 2017

0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+

Portfolio 7.4% 4.8% 8.8% 13.9% 25.2% 25.5% 14.4% 0.0%

Benchmark* 0.0% 0.0% 1.8% 34.0% 27.2% 22.4% 14.6% 0.0%


18


0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%


CJPRMA The Long Term Growth Account (Tactical) BAML 1-5 Yr US Treasury/Agency Index

CJPRMA The Long Term Growth Account (Tactical) Period Ending

October 31, 2017



December 31, 2013

Annualized


Inception

CJPRMA The Long Term Growth Account (Tactical) 0.01% 0.53% 1.12% 1.25% N/A N/A 1.39%

BAML 1-5 Yr US Treasury/Agency Index -0.08% 0.07% 0.80% 1.00% N/A N/A 1.11%



19


CJPRMA The Long Term Growth Account

10/31/2017 7/31/2017






Average Quality** AAA AA+/Aa1 AA+/Aa1




Two securities were purchased during the quarter, one Agency note and one Treasury note, with maturities in June 2027

and August 2027, respectively. Several securities with maturities in 2022 were sold to facilitate the new holdings in the

portfolio.

20

Agency 44.1%


0.2%

US Corporate 16.4%

US Treasury 39.3%

Sector Distribution


October 31, 2017 July 31, 2017

Agency 43.3%


0.6%

US Corporate 16.4%

US Treasury 39.8%

21

AAA AA A <A NR

10/31/17 1.1% 90.0% 8.9% 0.0% 0.0%

07/31/17 1.5% 89.6% 8.9% 0.0% 0.0%

Source: S&P Ratings


October 31, 2017 vs. July 31, 2017


0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

AAA AA A <A NR

10/31/2017 7/31/2017

22

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

0 - 0.5 0.5 - 1 1 - 2 2 - 3 3 - 5 5 - 7 7 - 10 10+

CJPRMA The Long Term Growth Account BAML 5-10 Yr US Treasury/Agency Index



Portfolio Compared to the Benchmark as of October 31, 2017

0 - 0.5 0.5 - 1 1 - 2 2 - 3 3 - 5 5 - 7 7 - 10 10+

Portfolio 1.5% 1.3% 6.5% 3.7% 14.8% 33.9% 38.2% 0.0%

Benchmark* 0.0% 0.0% 0.0% 0.0% 14.6% 57.7% 27.7% 0.0%


23


-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%


CJPRMA The Long Term Growth Account BAML 5-10 Yr US Treasury/Agency Index

CJPRMA The Long Term Growth Account Period Ending

October 31, 2017



October 31, 1995

Annualized


Inception

CJPRMA The Long Term Growth Account -0.06% -0.40% 1.92% 2.50% 1.84% 5.23% 5.99%

BAML 5-10 Yr US Treasury/Agency Index -0.16% -1.10% 1.42% 2.11% 1.42% 4.61% 5.56%



24

Issuers

California Joint Powers RMA Consolidated – Account #691 As of 10/31/2017

Issue Name Investment Type % Portfolio

Government of United States US Treasury 30.73%

Federal Home Loan Bank Agency 13.39%

Federal National Mortgage Association Agency 13.03%

Local Agency Investment Fund LAIF 10.43%

Federal Farm Credit Bank Agency 4.05%

Tennessee Valley Authority Agency 3.13%

Federal Home Loan Mortgage Corp Agency 2.68%

Wells Fargo Corp US Corporate 1.43%

Apple Inc US Corporate 1.33%

ChevronTexaco Corp US Corporate 1.28%

Qualcomm Inc US Corporate 1.28%

Bank of New York US Corporate 1.28%

Cisco Systems US Corporate 1.27%

Eli Lilly & Co US Corporate 1.27%

HSBC USA Corp US Corporate 1.27%

Deere & Company US Corporate 1.24%

Berkshire Hathaway US Corporate 1.24%

Microsoft US Corporate 0.86%

Bank of Tokyo-Mit UFJ Commercial Paper 0.83%

JP Morgan Chase & Co US Corporate 0.80%

Bank of Nova Scotia Houston Negotiable CD 0.64%

Oracle Corp US Corporate 0.64%

Honda Motor Corporation US Corporate 0.64%

Intl Bank Recon and Development Supranational 0.63%

John Deere ABS ABS 0.62%

Exxon Mobil Corp US Corporate 0.61%

International Finance Corp Supranational 0.55%

Honda ABS ABS 0.52%

Pepsico Inc US Corporate 0.52%

BlackRock Inc/New York US Corporate 0.44%

25

Issuers

California Joint Powers RMA Consolidated – Account #691 As of 10/31/2017

Issue Name Investment Type % Portfolio

Fidelity Institutional Govt Money Market Fund Money Market Fund FI 0.38%

Toyota ABS ABS 0.38%

State Street Bank US Corporate 0.32%

Toyota Motor Corp US Corporate 0.16%

Nissan ABS ABS 0.14%

Total 100.00%

26

Disclosure

Information contained herein is confidential. Prices are provided by IDC, an independent

pricing source. In the event IDC does not provide a price or if the price provided is not

reflective of fair market value, Chandler will obtain pricing from an alternative approved third

party pricing source in accordance with our written valuation policy and procedures. Our

valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

27

Back to Agenda


AGENDA BILL

ITEM: 4 TITLE: APPROVAL OF 2017 ACTUARIAL REPORT AND PROPOSED FUNDING AND RATES FOR PY 2018/2019

MEETING: 11/16/17

GENERAL MANAGER:

Recommended Actions: Approval of: (1) the 2017 actuarial study, (2) the proposed funding and rates for PY 2018/2019. Strategic Direction: This item addresses Strategic Goal 1, Employ Customizable Products and Services to be Competitive and Strategic Goal 3, Foster Informed and Engaged Board Leadership. Item Explanation: Mr. Mujtaba Datoo of Aon Global Risk Consulting conducted the 2017 actuarial study. He will be present to discuss the results. The CJPRMA staff report, which summarizes the study, is attached hereto as an exhibit. This year, the value of estimated outstanding losses decreased $7.9 million (16%) to $41.4 million. This was due to a $10.8 million decrease in case reserves. Several large cases were settled during the year, which led to the decrease. The actuarially proposed maximum redistribution for FY 2017/18 is $5.6 million. This amount covers excess equity in PY 1998 - 2012. This doesn’t provide for funding for the deficit net equity position of program years 2013 – 2017, which is ($38,792,271); Exhibit LI-20, page 80, column (8). In order to provide additional funding for these years, we are recommending that there be no redistribution in FY 2017/2018. The total required liability funding for PY 18/19 is $13.08 million. The total funding rate being proposed is $0.773/$100. This is based upon a projected payroll of $1.73 billion, which is a 3% increase from the PY 17/18 payroll. The proposed rate $0.773 is a $0.017 decrease from the previous year. The following table shows the proposed net liability premium for PY 18/19 as well as the four previous years for comparison:

Back to Agenda

Although the liability premium is approximately the same as last year, the estimated net premium of $13.2 million is an increase of $1,465,559 (12.5%).

Net Premiums Paid Program

Year Payroll

(billions) Liability Premium

Less: Realized

Invest Income

Add: ELF

Net Premium

2018/19 (proposed) $1.73 $13,167,498 $0 $0 $13,167,498

2017/18 1.68 13,076,879 (1,874,940) 500,000 11,701,939 2016/17

1.60 11,370,599 (2,153,726) 1,000,000 10,216,873 2015/16

1.53 10,730,175 (2,769,050) 1,000,000 8,961,125 2014/15

1.46 11,430,273 (4,345,416) 1,550,000 8,634,857 In 2008, the liability premium funding was adjusted to help our member entities during the recession. This along with the increased claim severity has reduced the pool equity by $28 million since 2011 as reflected in the table below:

Staff is recommending the following changes to the current methodology of funding the liability premium:

1. No longer use the realized investment income to fund the program year. This allows the investment income to remain in the program years’ equity and accrue and pay losses. By doing this we can also use the present value of funding rates.

2. The current balance of the Excess Loss Fund (ELF) is $17.7 million. It will no longer be funded through the program year premium. In 18/19 it will be funded through investment income and member premium allotment, if approved by the Board of Directors, until it reaches the goal of $22.5 million.

3. Forgo the FY 17/18 redistribution. These funds can be used to fund the deficit net equity position in the current years.

10/11 11/12 12/13 13/14 14/15 15/16 16/17 TotalPremium 11,770,677 11,445,319 11,132,683 10,949,289 11,430,273 10,730,175 11,370,599 78,829,015

Invest Income 5,405,634 4,883,396 5,943,685 4,483,826 4,345,416 2,769,050 2,153,726 29,984,733 Redistribution 5,858,080 4,845,851 4,161,497 3,534,251 2,187,193 2,655,513 2,785,602 26,027,987 Claims Paid 6,489,746 8,997,553 7,090,485 (2,225) 5,421,948 9,489,465 13,279,868 50,766,840

(5,982,783) (7,281,481) (6,062,984) 2,933,437 (524,284) (4,183,853) (6,848,597) (27,950,545)

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Staff recommends approval of:

1. The 2017 actuarial study. 2. The PY 18/19 proposed rates & funding 3. No Redistribution in FY 17/18

Fiscal Impact: 1. To be determined

Exhibits:

1. 2017 Actuarial Study – to be emailed separately 2. Staff Report June 30, 2017, Actuarial Study

10:49 AM Page 1 11/9/2017

Staff Report on the June 30, 2017 Actuarial Study

The actuarial study as of 06/30/17 was prepared by AON Global Risk Consulting. Staff has summarized pertinent information from the current and past actuarial studies for your review.

Estimated Outstanding Losses

Table A below shows the Estimated Outstanding Losses for the last five years. The Estimated Outstanding Losses (EOL) includes case reserves and IBNR and is stated at the expected value. EOL decreased from $49.3 million as of 06/30/16 to approximately $41.4 million as of 06/30/17. This was due to a decrease in case reserves of $10.8 million.

(Table A) As of: 06/30/13 06/30/14 06/30/15 06/30/16 06/30/17

Case Reserves $7,069,460 $16,234,436 $21,123,266 $24,783,723 $13,985,443 IBNR 30,629,281 29,814,236 26,040,360 24,497,157 27,387352 EOL 37,698,741 46,048,672 47,163,626 49,280,880 41,372,798

Table B below shows the ratio of equity to SIR. This ratio is a measure of the maximum amount equity could decline due to a single full limits loss.

(Table B) As of: 06/30/13 06/30/14 06/30/15 06/30/16 06/30/17

Total Equity $76,532,200 $78,405,741 $76,407,305 $70,664,299 $60,303,736 Less EOL 37,698,741 46,048,672 47,163,626 49,280,880 41,372,798 Net Equity 38,833,459 32,357,069 29,243,679 21,383,419 $18,930,938

Ratio Net Equity/

$4.5 max loss 8.6 7.2 6.5 4.7 4.2

Equity Redistribution

Table C below shows the net redistributions from FY 2013/14 thru FY 2016/17. In calculating the excess equity, liabilities are stated at the 90% confidence level. Exhibit LI-20, pages 78-80, of the actuarial report shows the potential maximum redistribution of$5,591,706 by pool layer and program year. The actuarial redistribution doesn’t provide forany funding for the deficit net equity position of program years 2012/13 thru 2016/17 (page12). In order to provide additional funding for these years, staff recommends that there beno redistribution in FY 2017/18.

(Table C)

Fiscal Year FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 (proposed)

Net Redistribution $3,534,251 $2,187,193 $2,655,513 $2,785,602 $0

10:49 AM Page 2 11/9/2017

Funding Rates

In FY 2008/09 in order to reduce and stabilize the premiums being paid in the liability program, the Board approved the following method of calculating the funding rate.

10 Years Developed, Trended Pooled Losses • Losses were based on a rolling ten year average of actual claims expenses. The most

recent year to be utilized in the calculation would be completed four years prior to the commencement of the program year to which the formula applied. Losses were calculated on a trended and developed basis with a 70% confidence level, undiscounted.

• Realized investment income from two years prior was credited directly toward the premium calculation.

• Creation of an Excess Loss Fund (ELF) of $22.5 million to be generated over a ten year period ($2.25 million per year).

• Members were permitted to designate whether redistributions were to be taken as a payment or credited toward the following year’s premium.

10 Years Developed Rates & Funding

Table D and E show the historical rates and funding that were used for calculating the premiums for PY 2013/14 through PY 2017/18 using the above criteria.

(Table D) Pool PY 13/14 PY 14/15 PY 15/16 PY 16/17 PY 17/18

B $0.123 $0.121 $0.102 $0.1093 $0.1357C 0.397 0.445 0.382 0.3851 0.4155D 0.241 0.223 0.227 0.2242 0.2391

Total $0.761 $0.789 $0.711 $0.7186 $0.7903

(Table E) Cost Item PY 13/14 PY 14/15 PY 15/16 PY 16/17 PY 17/18

Losses $7,431,580 $8,161,295 $7,272,702 $7,783,865 $9,067,106 Reins 2,089,913 1,846,331 2,033,565 2,161,734 2,509,415

Overhead 1,425,000 1,425,000 1,425,000 1,425,000 1,500,000 Total $10,946,493 $11,432,626 $10,731,267 $11,370,599 $13,076,521

Payroll $1,455,653,454 $1,464,479,023 $1,525,590,620 $1,599,817,298 $1,676,882,423

10:49 AM Page 3 11/9/2017

PY 2018/19 Proposed Rates & Funding

Since PY 2012/13 we have seen an increase of claim frequency and severity. This along with withdrawing the investment income and redistributions continues to draw down on the equity. For this reason we are recommending a few changes to the funding for PY 2018/19.

• No longer use the realized investment income to fund the program year. This allows the investment income to remain in the program years’ equity and accrue and pay losses. By doing this we also can use the present value of funding rates.

• The current balance of the Excess Loss Fund (ELF) is $17.7 million. It will no longer be funded through the program year premium. In FY 18/19 it will be funded through investment income and member premium allotment, if approved by the Board of Directors, until it reaches the goal of $22.5 million.

• Forgo the FY 17/18 redistribution. These funds can be used to fund the deficit net equity position in the current years.

Tables F and G show the proposed rates and funding for PY 2018/19. The rolling 10 year average that was used for this funding includes program years 2004/05 through 2013/14. PY 2003/04 which dropped off the 10 year average had incurred losses of $0; PY 2013/14 which is now included currently has incurred losses of $16.2 million.

For the premium calculation, we are estimating that payroll will increase by 3% to $1.73 billion. The reinsurance amount is estimated at $2.58 million. Overhead expense budgeted at $1.55 million.

70% Confidence Level - Discounted (Table F)

Losses $9,033,499 Pool B 0.144 $2,298,847 Reinsurance 2,584,000 Pool C 0.390 6,734,652

Overhead 1,550,000 Pool D 0.239 4,134,000 Total $13,167,499 Total 0.773 $13,167,499

Table G shows the proposed net liability premium for PY 18/19. (Table G)

Payroll Liability Premium

Less: Realized Invest Income

Add: ELF

PY 18/19 Estimated Net

Premium $1,727,189,000 $13,167,499 $0 $0 $13,167,499

3% inc 0.69% inc 12.5% inc

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CALIFORNIA JOINT POWERS

RISK MANAGEMENT AUTHORITY

AGENDA BILL

ITEM: 5 TITLE: APPROVAL OF BOARD POLICY FOR ANNUAL REVIEW MEMBER LOSS HISTORY

MEETING: 11/16/17

GENERAL MANAGER:


Recommend Approval. The general manager recommends the Board of Directors approve the proposed Board Policy for Annual Review of Members Loss History effective November 16, 2017.


This item addresses Strategic Goal 1, Employ Customizable Products and Services to be Competitive and Strategic Goal 3, Foster Informed and Engaged Board Leadership. Item Explanation:

The Board of Directors approved a motion at the August Board meeting to develop a written policy on evaluation of a member Self-Insured Retention (SIR) that would require an annual review of member losses and their impact on the overall CJPRMA Program. The Board directed staff to draft a policy and submit for review and approval at the November meeting. The policy will require an annual review of member loss history that will utilize a ten-year rolling average claims experience that is currently being used for the development of annual contributions. The policy evaluates all members and will compare total contributions for the ten-year window and the total CJPRMA incurred losses. In the event that a member has a loss severity that exceeds 200%, the Board of Directors will have the option of modifying that member’s self-insured retention based on the policy. (Exhibit 1) The member loss history is also based on the identical 10-year rolling average used by the actuary to determine the annual contributions. Staff applied a $2,500,000 cap for all losses incurred by members. The capping eliminates the impact of a significant loss that would impact the member’s overall loss history for multiple program years. The Member Loss Experience Rating 10 Year Rolling Average for PY 04/05 – 13/14 is attached to this agenda bill. (Exhibit 2)

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The Board of Directors will implement one of the following options upon their review:

1. A member that currently participates in Pool B ($500,000 SIR) will be

removed from Pool B and have their SIR increased to $1,000,000 effective July 1 of the following program year. The member would not contribute to Pool B.

2. A member that currently participates in Pool B ($500,000 SIR) will remain in Pool B but will share equally in losses between $500,000 and $1,000,000. The $500,000 pool layer will be shared at a maximum of $250,000 for the member and $250,000 by CJPMRA. There will be no reduction in contributions.

3. Pool C ($1,000,000 SIR) members will have a pro rata sliding corridor deductible. Member will share equally in losses between $1,000,000 and $5,000,000. The $4,000,000 pool layer will be shared at a maximum of $2,000,000 by the member and $2,000,000 by CJPRMA. There will be no reduction in contributions.

4. Pool C ($1,000,000 SIR) members will be subject to a $2,500,000 SIR. There will be no reduction in contribution.

5. The Board can choose to defer the issue and not enact an SIR change for the member with the adverse loss history.

Implementation of options listed above requires a two-thirds vote of the Board of Directors in attendance. Any member impacted by this policy will be subject to the designated self-insured retention for a minimum of three years. Upon completion of the third program year, the Board of Directors will review and determine if the member’s loss experience has changed and requires SIR modification. Once the Board of Directors has determined a member SIR modification, the impacted member will be issued a letter by December 15th. The member may appeal the decision at the following scheduled Board of Directors meeting. Members impacted by this policy will have the following appeal options:

• Provide a written explanation of their negative loss history • Request a deferral or appeal in writing • Submit risk management policy or plan to improve their loss history

The determination by the Board of Directors will be final and the member will not have options for alternative retentions. The policy would become effective November 16, 2017. Dr. William Deeb and Mr. Mujtaba Datoo will be in attendance at the meeting to assist in the discussion. The general manager will discuss the options with the Board.

Staff recommends that the Board of Directors approve and adopt the policy.

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Fiscal Impact:

Unknown at this time. The ultimate impact on cost savings by members will be based upon the reduction of incurred losses in the CJPRMA layers.

Exhibits: 1. Board Policy - Annual Review of Members Loss History 2. Member Loss Experience Rating 10 Year Rolling Average PY 04/05 – 13/14

G: WPData> Board Policies> New Formatted Policies> #25

CALIFORNIA JOINT POWER RISK MANAGEMENT AUTHORITY BOARD POLICY Number B25 Page 1 of 2 Subject: Annual Review of Members Loss History

Date Adopted:

Effective Date:

Agenda Bill 5 Date Revised:

Supersedes:

This policy is designed to improve the overall financial stability of the CJPRMA program and to provide cost effective coverage to all members. This policy provides the Board of Directors options for a Self-Insured Retention (SIR) change. The Staff will prepare an annual report to the Board of Directors for action at the November meeting. If needed Staff will provide the report to the Executive Committee prior to the November Board meeting. Staff will provide the Board of Directors with a Member Loss Experience Report. This report will reflect 10 year-rolling average utilized by the Actuary to determine the annual contributions. The Board of Directors will review members with an experience rating in excess of 200% capped amount annually. The Member Loss Experience Report will include the following:

• Total Contributions • CJPRMA Total Net Incurred in Pools B & C • Number of Claims • Contributions to Pools B & C • Total Losses • Total Losses Capped at $2,500,000 • Experience Rating Capped at $2,500,0000

The Board of Directors will review all members with a capped loss experience in excess of 200%. The Board of Directors will implement one of the following options subsequent to their review:

1. A member that currently participates in Pool B ($500,000 SIR) will be removed from Pool B and have their SIR increased to $1,000,000 effective July 1 of the following program year. The member would not contribute to Pool B.

2. A member that currently participates in Pool B ($500,000 SIR) will remain in Pool B but will share equally in losses between $500,000 and $1,000,000. The $500,000 pool layer will be shared at a maximum of $250,000 for the member and $250,000 by CJPMRA. There will be no reduction in contributions.

3. Pool C ($1,000,000 SIR) members will have a pro rata sliding corridor deductible.

Member will share equally in losses between $1,000,000 and $5,000,000. The $4,000,000 pool layer will be shared at a maximum of $2,000,000 by the member and $2,000,000 by CJPRMA. There will be no reduction in contributions.

G: WPData> Board Policies> New Formatted Policies> #25

CALIFORNIA JOINT POWER RISK MANAGEMENT AUTHORITY BOARD POLICY Number B25 Page 2 of 2 Subject: Annual Review of Members Loss History

Date Adopted:

Effective Date:

Agenda Bill 5 Date Revised:

Supersedes:

4. Pool C ($1,000,000 SIR) members will be subject to a $2,500,000 SIR. There will

be no reduction in contribution.

5. The Board can choose to defer the issue and not enact an SIR change for the member with the adverse loss history.

Implementation of options listed above requires a two-thirds vote of the Board of Directors in attendance. Any member impacted by this policy will be subject to the designated self-insured retention for a minimum of three years. Upon completion of the third program year, the Board of Directors will review and determine if the member’s loss experience has changed and requires SIR modification. Once the Board of Directors has determined a member SIR modification, the impacted member will be issued a letter by December 15th. The member may appeal the decision at the following scheduled Board of Directors meeting. Members impacted by this policy will have the following appeal options:

• Provide a written explanation of their negative loss history • Request a deferral or appeal in writing • Submit risk management policy or plan to improve their loss history

Authorized Signature David J. Clovis , General Manager

Pool B Funding Pool B Losses Pool C Funding Pool C Losses Total Losses

Losses Capped at $2.5mm Total Funding

Total Funding

%# of

Losses Experience

Rating

Experience Rating with

$2.5 Cap

Alameda 1,012,187 1,410,988 2,544,013 3,762,476 5,173,464 5,126,374 3,556,200 4% 5 145% 144%

Chico 542,890 539,614 1,413,564 - 539,614 894,518 1,956,454 2% 4 28% 46%

Fairfield 811,944 981,464 2,101,844 511,000 1,492,464 1,492,464 2,913,788 4% 4 51% 51%

Fremont 1,532,563 2,131,250 3,952,914 2,615,804 4,747,054 5,076,284 5,485,477 7% 6 87% 93%

Livermore 700,159 104,438 1,810,864 - 104,438 104,438 2,511,023 3% 2 4% 4%

Lodi 527,154 877,210 1,335,049 752,655 1,629,865 1,629,865 1,862,203 2% 3 88% 88%

NCCSIF 1,231,232 2,028,345 6,638,106 4,861,284 6,889,629 6,889,629 7,869,338 10% 15 88% 88%

Petaluma 462,016 754,541 1,191,018 915,625 1,670,166 1,670,166 1,653,034 2% 6 101% 101%

Redding 977,668 155,056 2,512,031 510,757 665,813 665,813 3,489,699 4% 7 19% 19%

REMIF 1,626,960 1,494,958 4,235,830 5,478,337 6,973,295 4,254,819 5,862,790 7% 8 119% 73%

Richmond 463,644 452,787 1,758,623 - 452,787 452,787 2,222,267 3% 4 20% 20%

Roseville 1,404,114 1,148,148 3,686,156 132,621 1,280,769 1,280,769 5,090,270 6% 8 25% 25%

San Leandro 75,113 - 1,380,308 2,123 2,123 2,123 1,455,421 2% 2 0% 0%

San Rafael 594,281 413 1,520,221 - 413 413 2,114,502 3% 1 0% 0%

Santa Rosa 1,555,448 1,095,075 4,038,699 216,126 1,311,201 1,311,201 5,594,147 7% 14 23% 23%

SCORE 391,887 31,558 990,645 - 31,558 31,558 1,382,532 2% 2 2% 2%

Stockton - - 5,169,492 6,374 6,374 6,374 5,169,492 6% 11 0% 0%

Sunnyvale 1,492,263 856,698 3,802,347 447,548 1,304,246 1,304,246 5,294,610 6% 5 25% 25%

Vacaville 879,775 1,339,486 2,268,364 910,579 2,250,065 2,250,065 3,148,139 4% 5 71% 71%

Vallejo 958,551 2,009,657 2,384,569 10,416,538 12,426,195 8,896,669 3,343,120 4% 13 372% 266%

YCPARMIA 3,013,802 1,814,677 7,821,348 4,167,878 5,982,555 4,554,111 10,835,150 13% 9 55% 42%

Total 20,253,651 19,226,362 62,556,005 35,707,725 54,934,087 47,894,685 82,809,656 100% 134

MEMBER LOSS EXPERIENCE RATING 10 YEAR ROLLING AVERAGE PY 04/05 - 13/14

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AGENDA BILL

ITEM: 6 TITLE: APPROVAL OF 2018-2019 EXCESS LOSS FUND (ELF) CONTRIBUTION BASED UPON LOSS EXPERIENCE MEETING: 11/16/17

GENERAL MANAGER:


Recommend Approval. The general manager recommends the Board of Directors approve the loss allocation based upon historical losses to the Excess Loss Fund (ELF) effective July 1, 2018.


This item addresses Strategic Goal 1, Employ Customizable Products and Services to be Competitive and Strategic Goal 3, Foster Informed and Engaged Board Leadership. Item Explanation:

The Board of Directors approved the adoption of a loss experience rated contribution by members based upon a loss experience weighting of 10% at the August meeting. A methodology that would provide contributions to ELF fund based on losses with a weighted factor of 10%. Weighted Loss Allocation for ELF Program Year 2018/19 (Exhibit 1) identifies the total additional contributions to be effective July 1, 2018 for members based upon the 10% loss factor. The additional contribution would be capped at 10% of total contributions to pools B, C & D for the PY 2018/19. In addition, this contribution would not reduce the current contribution based upon payroll. The loss experience portions would be credited to the ELF fund and the members whose losses did not generate an additional contribution will not be required to contribute to the ELF fund for the PY2018/19. Dr. William Deeb and Mr. Mujtaba Datoo will be in attendance at the meeting to assist in the discussion. The general manager will be present for discussion on this item.

Staff recommends that the Board of Directors adopt the Excess Loss Fund (ELF) contribution for the PY 2018/19 based upon the 10% loss history of members.

Fiscal Impact: None at this time. The funding to ELF generated by a 10% weighted factor will be $222,371 for program year 2018-2019. Exhibits:

1. Weighted Loss Allocation for Excess Loss Funding PY 2018/19

Weighted Loss Allocation for Excess Loss FundingPY 2018/19

payroll 90.0% 90.0% 100.0%Freq 0.0% 0.0% 0.0%

Inc losses 10.0% 10.0% 0.0%

Alloc on 2018 payrollPrem Alloc

on 2018 P/R Pool B Pool B Pool C Pool C Pool D Pool D

Prem based on 90/10 Weight

2018Payroll Pool B Pool C Pool D Total Weight Funding Weight Funding Weight Funding Total $ Difference

% Difference 10% Cap

Alameda 2.9% 72,933 197,182 121,038 391,154 3.5% 79,442 3.7% 248,735 2.9% 121,038 449,215 58,061 14.8% $39,115Chico 1.8% 46,003 124,373 76,345 246,720 2.2% 49,476 1.7% 111,935 1.8% 76,345 237,757 (8,964) -3.6%Fairfield 3.2% 78,838 213,147 130,838 422,824 3.5% 79,974 3.0% 201,512 3.2% 130,838 412,325 (10,499) -2.5%Fremont 6.7% 166,260 449,502 275,923 891,685 7.5% 172,453 6.9% 465,030 6.7% 275,923 913,406 21,721 2.4% $21,721Livermore 3.2% 79,289 214,367 131,587 425,243 3.2% 72,479 2.9% 192,930 3.2% 131,587 396,996 (28,247) -6.6%Lodi 1.9% 46,315 125,217 76,863 248,396 2.3% 52,391 1.9% 124,626 1.9% 76,863 253,880 5,484 2.2% $5,484NCCSIF 9.8% 244,266 660,400 405,380 1,310,046 10.7% 246,910 10.5% 705,387 9.8% 405,380 1,357,677 47,631 3.6% $47,631Petaluma 1.9% 46,803 126,537 77,673 251,013 2.3% 51,855 1.9% 128,301 1.9% 77,673 257,830 6,817 2.7% $6,817Redding 4.1% 101,765 275,134 168,888 545,787 4.3% 98,599 3.7% 247,831 4.1% 168,888 515,317 (30,470) -5.6%REMIF 6.4% 158,785 429,293 263,517 851,596 7.1% 164,266 7.1% 480,786 6.4% 263,517 908,569 56,973 6.7% $56,973Richmond 5.2% 129,833 351,016 215,468 696,317 5.5% 127,197 4.7% 316,606 5.2% 215,468 659,271 (37,046) -5.3%Roseville 6.9% 171,108 462,609 283,968 917,685 7.2% 166,290 6.2% 418,860 6.9% 283,968 869,118 (48,567) -5.3%San Leandro 2.0% 50,194 135,703 83,300 269,197 2.0% 45,174 1.8% 122,173 2.0% 83,300 250,648 (18,549) -6.9%San Rafael 2.3% 58,369 157,807 96,868 313,044 2.3% 52,537 2.1% 142,026 2.3% 96,868 291,431 (21,613) -6.9%Santa Rosa 6.6% 164,648 445,143 273,246 883,037 7.0% 159,908 6.0% 404,722 6.6% 273,246 837,876 (45,160) -5.1%SCORE 1.3% 32,931 89,032 54,651 176,613 1.3% 29,975 1.2% 80,128 1.3% 54,651 164,755 (11,858) -6.7%Stockton 7.7% 0 519,476 318,875 838,351 0.0% 0 6.9% 467,649 7.7% 318,875 786,524 (51,827) -6.2%Sunnyvale 5.9% 146,300 395,536 242,796 784,632 6.1% 140,842 5.4% 364,460 5.9% 242,796 748,099 (36,534) -4.7%Vacaville 3.4% 85,049 229,939 141,146 456,133 4.0% 90,886 3.3% 224,193 3.4% 141,146 456,225 91 0.0% $91Vallejo 3.3% 83,044 224,519 137,819 445,382 4.2% 96,263 5.8% 389,962 3.3% 137,819 624,043 178,662 40.1% $44,538YCPARMIA 13.5% 336,114 908,720 557,809 1,802,643 14.0% 321,932 13.3% 896,798 13.5% 557,809 1,776,539 (26,104) -1.4%

Total 100.0% 2,298,847 6,734,652 4,134,000 13,167,498 100.0% 2,298,847 100.0% 6,734,652 100.0% 4,134,000 13,167,498 0 0.0% $222,371

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AGENDA BILL

ITEM: 7 TITLE: REPORT ON THE STATUS OF THE INSURANCE INDUSTRY AND ANTICIPATED IMPACT OF THE NORTH BAY FIRES MEETING: 11/16/17

GENERAL MANAGER:


This is an information only item reporting on the status of the insurance industry and anticipated impact of the North Bay Fires.


This item addresses Strategic Goal 3, Foster Informed and Engaged Board Leadership. Item Explanation:

Mr. Robert Lowe, Vice President of Public Entity from Alliant Insurance Services, Inc. will be reporting on the status of the insurance market and the impact of the North Bay Fires on the CJPRMA Property Program members.

Fiscal Impact:

None

Exhibits: None

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AGENDA BILL

ITEM: 8 TITLE: CITY OF VALLEJO APPEAL OF PROPERTY COVERAGE FOR LEASED FACILITIES

MEETING: 11/16/17

GENERAL MANAGER:


The general manager recommends the Board of Directors deny the appeal by the City of Vallejo for leased properties.


This item addresses Strategic Goal 1, Employ Customizable Products and Services to be Competitive. Item Explanation:

The City of Vallejo made a request in 2016 to add Building 127 Fire Station Facility and Building 115 Fire Admin Building to the property program. It was determined that these buildings were leased and not owned by the City of Vallejo. Also it was identified by the general manager that an additional five buildings: Building 485, Building 535, Building 46, Quarters A, and Quarters B that were included in the total insured values (TIV) reported to CJPRMA for the City of Vallejo were also leased and not owned. All of these structures are included within the lease agreement between the City of Vallejo and LMI. The City did not have a financial interest in these properties and there was no written requirement, within the lease, to provide the property coverage.

The general manager, Board Counsel and the property broker all reviewed the language within the agreement and concluded there was no specific requirement to provide property coverage for the structures and to name LMI as a loss payee on the program. The general manager issued a notice to the City of Vallejo on December 15, 2016 (exhibit 3) advising them that the two new updated structures, Building 127 and 115, would not be added to the program. In addition, the City was advised that effective July 1, 2017 Buildings 485, 535, 46, and Quarters A and B would be removed from the program. CJPRMA advised the City that the property program could insure tenant improvements within the buildings and contents provided by the City but not the buildings.

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CJPRMA also contacted the underwriting team and confirmed that property coverage would be provided in the event that a contractual requirement were included within the agreement between LMI and City of Vallejo. Staff was advised that Vallejo and LMI were proceeding with an update to their lease agreement and the required language would be included within the lease.

Subsequently, the general manager was contacted by Director Claudia Quintana and advised that the lease agreement would not be updated. Ms. Quintana expressed that in her evaluation of the lease, it was clear that the requirement for property coverage was included in the current language of the lease.

Byrne Conley, Board Counsel evaluated the existing language in the LMI lease agreement and provided a review letter. (Exhibit 1). Mr. Conley states that the current language within the lease is vague and doesn’t expressly state that the City of Vallejo is required to provide property coverage for the buildings and there isn’t a requirement to name LMI as a loss payee.

The property program underwriters reviewed the LMI lease agreement. The underwriters created the CJPRMA program to protect the financial interests of CJPRMA and its members. The underwriters have agreed to provide coverage where there is a specific contractual requirement. Alliant Insurance and the property underwriters provided a review of the current documents. (Exhibit 2)

Based upon the comments provided by the underwriting team, CJPRMA does not have the ability to include these properties for coverage in the property program that are currently leased by City of Vallejo from LMI. In the event that an addendum or update to the agreement is made that specifically states property insurance for the replacement cost of the structure is required and that LMI is required to be named as a loss payee then CJPRMA could provide coverage.

Ms. Quintana was informed that CJPRMA was not able to include these structures based upon the current language in the lease agreement. Ms. Quintana requested an appeal to the Board of Directors and requested this item be placed on the agenda for discussion.

Staff recommends that the Board of Directors uphold the determination by Board Counsel, underwriters and the general manager.

Fiscal Impact: None

Exhibits: 1. Board Counsel’s Review Letter 10-31-2017 2. Alliant’s Insurance Review Letter 11-08-2017 3. CJPRMA Letter to Vallejo 12-15-2016

Alliant Insurance Services, Inc. 333 South Hope Street Suite 3750 Los Angeles, CA 90071

O 213 270 0145 CA License No. 0C36861

www.alliant.com

November 8, 2017 California Joint Powers Risk Management Authority (CJPRMA) Attn: David Clovis, General Manager 3201 Doolan Road Livermore CA 94551 RE: City of Vallejo/Lennar Agreement David – I have discussed the City of Vallejo’s current agreement with Lennar and covering the buildings that are being occupied by City staff and departments. The underwriters on CJPRMA’s have all echoed that buildings can be added to the program if they are either owned by a member or if the member is contractually obligated to provide property insurance for a building that is being leased. However, all underwriters have indicated that the current agreement is vague and open to interpretation, which makes it difficult to add to the property program at this time. The cause for concern is the statement within the agreement that reads: City shall obtain and keep in full force and effect standard insurance policies for the City Occupied Facilities, including any and all insurance coverages “customarily” obtained by other municipalities or government agencies of similar size and purpose, and including, without limitation, any insurance required by law. The question here is, what are standard insurance policies obtained by similar municipalities? Municipalities and governmental agencies purchase insurance based on their risk appetite, some things they choose to self-insure while others are fully insured. Is the requirement for Replacement Cost or Actual Cash Value? It varies from one agency to another. The insurance wording in the agreement also fails to show specific requirements, as are standard in most agreements. It does not specify limits, coverage (CGL, Auto, etc) and only makes a reference to workers compensation. It’s difficult to determine what they are asking for. Per the underwriters, they would be willing to add these buildings if a properly executed agreement or addendum to the agreement is provided which properly outlines the coverage’s desired and limits. If the contract is amended, please let me know and the buildings can be added to the program. Otherwise, at this time we will not be able to include these locations on CJPRMA’s property program. As always, please let me know if I can be of any further assistance. Regards, Robert Lowe Vice President, Public Entity

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AGENDA BILL

ITEM: 9 TITLE: APPLYING THE CALIFORNIA TORT CLAIMS ACT

MEETING: 11/16/17

GENERAL MANAGER:


Strategic Direction: This item addresses Strategic Goal 1, Core Products and Services Innovation and Strategic Goal 2, Member Education and Training Initiative. Item Explanation: Rick Buys, Interim Claims Administrator has developed a presentation for the Board of Directors titled Applying the California Tort Claims Act. This presentation will be provided to the Board of Directors in lieu of the bi-annual claims presentation. . Mr. Buys will be present to discuss the report with the Board of Directors.

Fiscal Impact: None Exhibits:

1. Applying the California Tort Claims Act

CALIFORNIA JOINT POWER RISK MANAGEMENT AUTHORITY

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APPLYING THE CALIFORNIA TORT CLAIMS ACT

Compliance with the procedural requirements of the Tort Claims Act, found in the California Government Code, is a condition precedent to most lawsuits against California public entities. The purpose is to give the public entity an opportunity to conduct a timely investigation, and to respond to the claim before litigation begins.

*It is important to note the Supreme Court case: DiCampli-Mintz v County of Santa Clara, (2012) 55 Cal.4th 983 and its recounting the legislative history of the Government Claims Act, per Section 915(a)(1), reflecting the Legislature’s intent that a “straightforward construction honors the statutory language and is consistent with the purpose of the claims statutes.” This decision confirms that courts must adhere strictly to the language of the claim presentation provisions when interpreting them.

WHEN IS A FORMAL CLAIM REQUIRED TO BE FILED WITH THE PUBLIC ENTITY?

• "Except as otherwise provided by statute, a public entity is not liable for an injury, whether such injury arises out of an act or omission of the public entity or a public employee or any other person." GC 815

• In general, most claims for money or damages (personal or real property) require a proper claim filing.

Exceptions to complying with the Government Code claims requirements: • Deprivation of federal or state civil rights; • Employee discrimination and harassment claims under California law; • Inverse condemnation; • Actions not strictly for "money or damages," such as injunctive relief; and • Vehicle code violations.

WHEN DOES A CLAIM NEED TO BE PRESENTED?

• Six months after the accrual of the cause of action for injury to a person or personal property. o The date of accrual typically is the date the injury occurred.

• One year for all other claims (e.g. contract claims or damage to real property claims). • Equitable Indemnity: six months after the defendant is served with the complaint if the public

entity not a named party. G.C. §§ 901, 911.2(a)

How was it presented? • Presented by mail: deemed presented when it is placed in the mail. • Presented by hand: presentation occurs when the claim is delivered.

G.C. §§ 915.2, 915(a) (1)

http://gsrma.org/site/blog_article/government-code-procedural-primer


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TO WHOM DOES A CLAIM NEED TO BE PRESENTED?

• Personal delivery of the claim must be to the clerk, secretary or auditor of the public entity, or • Mailed to the clerk, secretary, auditor, or to the governing body at its principal office.

G.C. §§ 915, 915(e)

WHAT NEEDS TO BE IN A CLAIM?

• The name and address of the claimant. • The address where notices should be sent. • The date, place, and other circumstances of the incident that gave rise to the claim asserted. • A general description of the injury, damage, or loss incurred. • The name of the public employee(s) causing the injury, damage, or loss incurred. • The amount claimed, if less than $10,000.

G.C. § 910

Substantial Compliance • If a claim provides the public entity with timely notice of the essential information despite its

deficiencies, the claimant may have substantially complied. - Substantial compliance cannot cure total omission of an essential requirement for a

valid claim. WHAT SHOULD BE DONE AFTER A CLAIM IS RECEIVED?

A public entity must act on a claim within 45 days after the claim is presented. § 912.4. Written notice of the entity’s action on a claim must be provided. §913; 915.4.

• Accept: claimant cannot bring suit against the entity if settlement is accepted. • Reject (in part or entirely): a rejection notice should follow. § 913 and 911.3

o Rejection must be made within 45 days of receipt, or the claim is deemed rejected by operation of law.

• Extend Time: the claimant and the entity can agree to extend the 45-day requirement. • Notice of Insufficiency: if the claim does not comply with the requirement, the board must give

written notice of insufficiency within 20 days of receipt of the claim. § 910, 911, and 915 • Take No Action: the claim is rejected by operation of law; the claimant has two years from the

accrual date to file suit. G.C. §§ 910.6, 911, 911.3, 911.6, 912.4, 913.4(b), 912.6(b), 913, 915.4, 912.4(b), 945.6, 945.6(a) (2) (What is the Purpose of this portion of the law?)

WHAT IF A CLAIM WAS NOT TIMELY PRESENTED? When a claimant fails to present a claim within the six months after the accrual of a cause of action, he or she may make a written “application for leave to present a late claim.” § 911.4(a). Public entity must grant the application for late claim under the following conditions:


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• Written application made within one year after accrual of the cause of action, AND • One of the following must apply:

• Failure to present a claim was through mistake, inadvertence, surprise, or excusable neglect and no prejudice to the public entity (which must justify the lateness of the claim).

• The clamant was a minor during the entire time of the claim presentation period. • The claimant was physically or mentally incapacitated during the claim presentation period

limit. • The claimant died before the expiration of the time to present a claim.

G.C. §§ 911.4(a), 911.4(b), 911.6(c), 911.8, 946.6

WHAT ARE THE TIME LIMITS TO RESPONSE TO THE LATE CLAIM APPLICATION?

Late Claim Response: the public entity has 45 days to act on the application • Accept: claimant deemed presented on the date leave to present the claim is granted.

o Public entity must then act on the claim within 45 days. • Reject: claimant has six months to file a petition for relief after a rejection.

WHAT IF THE LATE CLAIM APPLICATION IS REJECTED?

Claimant can file a Petition for Relief from the Claim Presentation Requirements. § 911.8. The Court can relieve a petitioner from the claim presentation requirements if the petitioner can prove:

Written application to present a late claim was made within 1 year after accrual of the cause of action, AND One of the following must apply:

• Failure to present a claim was through mistake, inadvertence, surprise, or excusable neglect and no prejudice to the public entity (after proof to the court).

• The clamant was a minor during the time of the claim presentation period. • The claimant was physically or mentally incapacitated during the time of the claim

presentation period. • The claimant died before the expiration of the time to present a claim.


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CHECKLIST FOR REVIEWING IF A CLAIM IS TIMELY AND/OR SUFFICIENT:

Examine the Notice of Claim in detail.

o No specific form is required for presenting a proper claim. However, ALL of the required information in the statute is required to be included in the claim.

Is the Notice of Claim sufficient, and is it timely?

o The claim must be presented within 6 months of the date of the incident. If note, it is a Late Claim: Send the Notice of Late Claim. Exceptions: Federal Actions – Civil Rights Violations, including illegal taking

of property (which includes inverse condemnation actions). Party has 2 years to file a suit in federal or state court to preserve their action.

Is the date of the incident clearly identified in the claim? If not, the claim is Insufficient.

Does each of the required answers to the claim form have enough information for the entity

to determine what it needs to know to investigate the claim? If not, the claim is Insufficient.

o If a claim is Insufficient, and it is also Late, send the Notice of Late Claim, because if challenged and the court overrules the challenge, it is an absolute defense and cannot be cured; an Insufficiency can be cured.

If a claim is over a year late, there is no basis to present an Application for Leave to Present

Late Claim.

A FEW DON’TS If a claim is Insufficient, do not Reject the claim at a later time, UNLESS, the insufficiency

has been remedied. If a claim is Insufficient, our argument is that a valid claim has not been submitted. And if the Insufficiency is not resolved before the time to file a valid claim runs, then it is too late to file a claim, and it is too late to remedy any Insufficiency.

If a claim is Late, do not Reject the claim at a later time, UNLESS it has been found that the claim was, in fact, Timely.

When you take official action on Rejecting a claim, you imply that the claim is accepted (meaning, the claim is in compliance with the Tort Claims Act requirements on submitting a valid claim) and your entity is waiving any Insufficiency or Late defect of the claim.


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PARTIAL INDEX OF MUNICIPAL IMMUNITIES / STATUTES GC ----- Government Code PC ----- Penal Code CC ----- Civil Code VC ---- Vehicle Code H&S---- Health & Safety Code

TOPIC STATUTE

Adoption of Laws &/or Failure to Adopt Employee Immunity GC 821

Arrest, with or without warrant Right of officer to effect PC 836 Citizen's arrest

PC 847 Breakage of door or window by police During attempted arrest PC 844 During service of warrant

PC 1531 Duties of officer arresting with warrant PC 848 Duties of police after arrest without a warrant PC 849 Of driver suspected of being under influence of drugs or alcohol VC 40300.5

Canals, Condition of GC 831.8

Collateral Source Rule GC 985

Conduits, Condition of GC 831.8

City Council Immunity GC 820.9

Dangerous Conditions of Public Property Defined GC 830 Trivial defect GC 830.2 Traffic control signs & roadway markings; mere lack of not evidence of GC 830.4 Subsequent precautions and present accident; not evidence of GC 830.5 Approved design or plan immunity GC 830.6 Failure to provide signals, markings, signs or devices described in VC GC 830.8 Non-operation of control signals controlled by emergency vehicles GC 830.9 Public entity liability for GC 835 Notice to public entity GC 835.2 Public entity defenses for GC 835.4 Employee limitations on liability GC 840 Employee liability for GC 840.2 Notice to public entity employee GC 840.4 Employee, defenses for GC 840.6 Injuries to Persons Committing Certain Felonies CC 847

Discretionary Acts Employee immunity GC 820.2


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Earth Movement, Gradual Legislative intent GC 865 Public entity immunity and defenses GC 866 Public entity employee immunity from liability GC 867

Emergency Vehicles Employee immunity during use of VC 17004 Public entity immunity during pursuit VC 17004.7 Exemption from other vehicle code sections VC 21055 Effect of exemption VC 21056 Duties of other motorists & pedestrians VC 21806

Emergency Medical Services Training Program Immunity H&S 1799.100 EMT & Paramedic Partial Immunity H&S 1799.104(b) EMT, Fire Fighter & Police Officer Immunity H&S 1799.106

Employees, Public Entity Public entity liability for GC 815.2 Liability and defenses GC 820 Immunity for acts of others GC 820.8

Executing or Enforcing Laws (See also GC 821) Public entity immunity for GC 818.2 Public entity employee immunity for GC 820.4

Fire Fire protection service GC 850 Providing fire protection facilities, equipment, personnel GC 850.2 Condition of fire protection facilities, equipment; and injuries caused during firefighting GC 850.4 Assistance provided; allocation of liability GC 850.6 Transporting persons injured by fire GC 850.8

Force Duty of private citizen to avoid use of force during arrest PC 834a Right of police to use reasonably PC 835a Breaking door or window by police during arrest PC 844 Breaking door or window by police during service of a warrant PC 1531

Hazardous Recreational Activities (See also Recreation Immunity CC 846) GC 831.7

Independent Contractors Public entity liability for GC 815.4

Inspection of Property Public entity immunity for GC 818.6 Public employee immunity for GC 821.4


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Legislating or Failing to Enforce Enactment Public entity immunity for GC 818.2

Licensing Activities Public entity immunity for GC 818.4 Public employee immunity for GC 821.2

Malicious Prosecution Public employee immunity for GC 821.6

Mandatory Duty Public entity liability for GC 815.6

Mental Illness Diagnosing or failing to diagnose mental illness or addiction GC 855.8 Confinement of persons for mental illness or addictions GC 856 Escape of persons confined` GC 865.2 Failure to admit person to public medical facility GC 856.4 Persons participating in judicial proceedings under 5150 are immune W&I 5550

Minors Parental liability for willful misconduct CC 1714.1

Misrepresentation Public entity immunity for GC 818.8 Public employee immunity for GC 822.2

Money Stolen from custody; employee immunity for GC 822

Narcotics Public entity immunity for publishing reports and records GC 818.7

Natural Condition of Unimproved Property Immunity of public entity & employee GC 831.2 Land failure caused by natural condition GC 831.25

Nuisance What is not deemed a nuisance CC 3482

Permits Issuance or non-issuance GC 818.4

Payment of Judgments Public Entities and JPA’s can make payment over ten years GC 970.6(a), 984(a)

Police Officer Rendering Assistance is a discretionary exercise GC 820.25 Ministerial duties are a mandatory exercise GC 820.25 Instituting judicial or administrative proceedings GC 821.6 Protection service / Duty to Respond GC 845 Right to reasonable use of force PC 835a


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Immunity from liability arising out of citizens arrest PC 847

Prisoners Defined GC 844 Injury to or by GC 844.6 Interference by public entity with right to judicial determination

o on legality of confinement GC 845.4 Failure to obtain medical care for GC 845.6 Loss arising out of parole, release, or escape of prisoner or person being arrested GC 845.8 Arrest and release GC 846

Prisons, Jails, Correctional Facilities GC 845.2

Public Entity Statutory basis for liability GC 815

Public Land Trusts GC 831.5

Punitive Damages Public entity immunity (only) GC 818

Recreation Immunity (See also Hazardous Recreational Activities GC 831.7) CC 846

Reimbursements of payments to and from Public entities and public employees GC 825, 825.2 & 825.6

Reservoirs, conditions of GC 831.8

Roads & Trails Repair work on non-accepted roads GC 831.3 Unpaved access roads and trails GC 831.4 Public employees working on highway VC 21053 Street sweepers & watering vehicles VC 21060

Tax Explanation of term GC 860 Tax collection proceedings GC 860.2

Trespass (Authorized), Public Entity Employee Immunity GC 821.8

Trivial Defect GC 830.2

Unconstitutional, Invalid or Inapplicable Enactment’s Public entity immunity for acts under authority of GC 820.6

Weather Conditions, Immunity GC 831 Weapons Duty of citizen to refrain from use of weapon during arrest PC 834a

Welfare & Institutions Immunity Persons participating in judicial proceedings under 5150 are immune W&I 5550

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AGENDA BILL

ITEM: 10 TITLE: STATUS UPDATE ON THE DEVELOPMENT OF CJPRMA EXCESS WORKERS’ COMPENSATION PROGRAM MEETING: 11/16/17

GENERAL MANAGER:

Recommended Actions: None. Staff will provide a status update on the development of CJPRMA Excess Workers’ Compensation Program. Strategic Direction: This item addresses Strategic Goal 1: Employ Customizable Products and Services to be Competitive.

Item Explanation: Staff has collected exposure and program structure data from members showing their current excess workers’ compensation program. Staff provided the member exposure data to Aon Risk Services. Dr. Deeb and staff met with a potential underwriter at the annual CAJPA conference. Since that time the underwriter has provided an indication on pricing to Aon. The pricing indication will be presented to the Board at this meeting. The Board will be informed of the development for this program. Staff reached out to the membership to provide exposure data and payroll information. To date members submitting data are: Chico, Livermore, Lodi, NCCSIF, Redding, Roseville, San Leandro and Sunnyvale. That accounts for approximately $665 million dollars of payroll. Recently we received a submission of payroll data from REMIF of approximately $100,000,000. Our estimate for program viability predicts that a minimum of $750 million to $1 billion of payroll will be required to make the program stable. Initial discussions with Dr. Deeb and the market indicated that their interest in a book of business would require approximately $1 billion of payroll to influence the program. The current value reported at $765 million is significantly less than the anticipated participation. Dr. Deeb discussed the reported payroll with the underwriters and there is significant interest in underwriting this program. The goal is to develop a long-term cost effective solution for our member’s workers’ compensation programs. The plan is to develop actual cost for the program and create a structure. There will be additional data that must be collected from the members to finalize a

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quote from the reinsurers and to prepare an actuarial review to determine for overall pricing. Our previous goal was to provide final numbers at this meeting. Unfortunately, we have been unable to finalize this process. We need to identify if there is a continued interest of the Board to proceed with this process. We are attempting to develop firm numbers for the program prior to December 31, 2017. Staff will be looking to the Board to make a determination if they wish to continue this process. If the Board is in agreement, staff will utilize Aon Actuarial Services by Mr. Mujtaba Datoo, to create a predictive modeling. Actuarial data will be used to finalize the primary rate and assist staff in contacting the market for potential reinsurers to complete a finalized product. When final rates and programs structure are developed and approved, staff will then take the final steps necessary to implement the program with a start date of July 1, 2018.

Dr. Deeb agreed that the underwriters would be fully supportive of the intended method moving forward. The underwriters would rely heavily on the actuarial assumptions created by CJPRMA in determining estimated contributions.

Dr. Deeb and staff will be present at the meeting to discuss the status of the program.

Fiscal Impact: To Be Determined

Exhibits:

None

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AGENDA BILL

ITEM: 11 TITLE: BUSINESS CALENDAR FOR 2017 & 2018

MEETING: 11/16/17

GENERAL MANAGER:

Recommended Actions: None: This item is being provided for information only.

Strategic Direction: Strategic Goal 3, Foster Informed and Engaged Board Leadership. Item Explanation: The CJPRMA Business Calendar will be provided as a standing agenda item for Executive Committee meetings and Board of Director Meetings. This calendar provides Board Members and staff with a listing of key business items and the required dates for completion.

Fiscal Impact: None

Exhibits:

1. CJPRMA 2017 Business Calendar 2. CJPRMA 2018 Business Calendar

Revised on 5-12-2017


2017 BUSINESS CALENDAR January

• Distribution of Executive Committee Agenda – 01/12/2017 • Executive Committee Meeting – 01/19/2017 • Member Quarterly Payroll Reports – 01/31/2017 • Distribution of Summary of Property Values • Distribution of Summary of APD Values • Distribution of Summary of Boiler & Machinery Values • Risk Management & Liability Prevention for Law Enforcement Leaders – (01/25/2017 - 01/26/2017) • Distribution of Property and Loss Data – 01/31/2017

February

• FPPC Form 700 Filing Requests Sent Out • PARMA Conference (02/12/2017 - 02/15/2017) • Redistribution of Equity Checks • Return APD, Property and Boiler & Machinery Renewals Lists to Staff • CPSI Playground Safety Training (02/21/2017 – 02/23/2017)

March

• Deadline for Members to submit Agenda items for March Meeting – 03/01/2017 • Distribution of Board of Directors Meeting Agenda – 03/9/2017 • Board of Directors Meeting – 03/16/2017 • Annual Meeting Room Requests • Distribution of Quarterly Member Loss Data

April

• FPPC Form 700 Filing Deadline 04/01/ 2017 • CJPRMA Board Member Orientation – 04/05/2017 • Distribution of Executive Committee Meeting Agenda – 04/13/2017 • Executive Committee Meeting – 04/20/2017 • Distribution of Certificate of Coverage Renewals Lists • Requests for Nominations for President/Vice President (Bi-annually) • ARM 56 Class - TBA • Distribute nomination for President and Vice President (even numbered years) • Member Quarterly Payroll Reports – 04/28/2017

May

• Deadline for Members to submit Agenda items for Annual Meeting – 05/01/2017 • Distribution of Board of Directors Annual Meeting Agenda– 05/18/2017 • Board of Directors Annual Meeting (05/24/2017 - 05/25/2017)

o Commercial Insurance Renewals o Proposed Budget for 2017-2018 o AB 1234 Ethics Training (even numbered years) o Bi-annual Review of Conflict of Interest Code (odd numbered years)

• Return Certificate of Coverage Renewals Lists to Staff

June

• Distribution of Executive Committee Meeting Agenda – 06/15/2017 • Executive Committee Meeting – 06/22/2017 • Certificates of Coverage Renewals mailed to certificate holders (6/30/2017) • Risk Management Plan Revisions • Distribution of Quarterly Member Loss Data

July

• General Liability Premiums Billed • Auto Physical Damage Program Premiums Billed • Property Program Premiums Billed • Boiler & Machinery Premiums Billed • Member Quarterly Payroll Reports - 07/31/2017

August

• Deadline for Members to submit Agenda items for August Meeting – 08/01/2017 • Distribution of Board of Directors Meeting Agenda – 08/10/2017 • Board of Directors Meeting – 08/17/2017

o Claims Audit Presentation • Bi-annual election of President and Vice President (even numbered years) • Election of Executive Committee Members • Bi-annual Appointment of Treasurer (even numbered years) • Financial Audit in process • Annual Review of Investment Policy • Actuarial Study in process • Requests for Program Year 2016-2017 reimbursement of liability training expenses due – 08/31/2017

September

• Distribution of Executive Committee Agenda – 09/21/2017 • Executive Committee Meeting – 09/28/2017 • CAJPA Conference (09/12/2017 - 09/15/2017) • Distribution of Quarterly Member Loss Data

October

• Member Quarterly Payroll Reports – 10/31/2017 November

• Deadline for Members to submit Agenda items for November Meeting – 11/01/2017 • Distribution of Board of Directors Meeting Agenda – 11/09/2017 • Board of Directors Meeting - 11/16/2017

o Actuarial Study Presented o Approval of Annual Meeting and Holiday Calendars o Financial Audit Presented o Annual Report Presented

December

• Deadline for change to SIR or withdrawal from any CJPRMA program - 12/29/2017 • Distribution of Quarterly Member Loss Data

WPData> Listings> Calendars> 2018 Revised 10/09/20/17


2018 BUSINESS CALENDAR January

• Distribution of Executive Committee Agenda – 01/11/2018 • Executive Committee Meeting – 01/18/2018 Loomis, CA • Member Quarterly Payroll Reports – 01/31/2018 • Distribution of Summary of Property Values • Distribution of Summary of APD Values • Distribution of Summary of Boiler & Machinery Values • Training TBA • Distribution of Property and Loss Data – 01/31/2018

February

• Fire EPL Training (02/01/2018) • FPPC Form 700 Filing Requests Sent Out • PARMA Conference (02/14/2017 - 02/16/2018 Monterey, CA) • Redistribution of Equity Checks • Return APD, Property and Boiler & Machinery Renewals Lists to Staff

March

• Deadline for Members to submit Agenda items for March Meeting – 03/05/2018 • Distribution of Board of Directors Meeting Agenda – 03/08/2018 • Board of Directors Meeting – 03/15/2018 • Annual Meeting Room Requests • Distribution of Quarterly Member Loss Data

April

• FPPC Form 700 Filing Deadline – 04/01/2018 • CJPRMA Member Orientation – TBA • Fire EPL Training (04/04/2018 or 04/05/2018) • Distribution of Executive Committee Meeting Agenda – 04/13/2018 • Executive Committee Meeting – 04/19/2018 Lodi, CA • Distribution of Certificate of Coverage Renewals Lists • Requests for Nominations for President/Vice President (Bi-annually) • ARM Class - TBA • Distribute nomination for President and Vice President (even numbered years) • Member Quarterly Payroll Reports – 04/27/2018

May

• Deadline for Members to submit Agenda items for Annual Meeting – 05/17/18 • Distribution of Board of Directors Annual Meeting Agenda– 05/23/2018 • Board of Directors Annual Meeting (05/30/2018 - 06/01/2018) Squaw Valley Resort

o Commercial Insurance Renewals o Proposed Budget for 2018-2019 o AB 1234 Ethics Training (even numbered years) o Bi-annual Review of Conflict of Interest Code (odd numbered years)

• Return Certificate of Coverage Renewals Lists to Staff

WPData> Listings> Calendars> 2018 Revised 10/27/20/17

June • Distribution of Executive Committee Meeting Agenda – 06/14/2018 • Executive Committee Meeting – 06/21/2018 Redding, CA • Bob Marshburn Training – TBD • Certificates of Coverage Renewals mailed to certificate holders (6/29/2018) • Risk Management Plan Revisions • Distribution of Quarterly Member Loss Data

July

• General Liability Premiums Billed • Auto Physical Damage Program Premiums Billed • Property Program Premiums Billed • Boiler & Machinery Premiums Billed • Member Quarterly Payroll Reports - 07/31/2018

August

• Deadline for Members to submit Agenda items for August Meeting – 08/06/2018 • Distribution of Board of Directors Meeting Agenda – 08/09/2018 • Board of Directors Meeting – 08/16/2018

o Claims Audit Presentation o Approval of Annual Meeting and Holiday Calendars

• Bi-annual election of President and Vice President (even numbered years) • Election of Executive Committee Members • Bi-annual Appointment of Treasurer (even numbered years) • Financial Audit in process • Annual Review of Investment Policy • Actuarial Study in process • Requests for Program Year 2017-2018 reimbursement of liability training expenses due – 08/31/2018

September

• Distribution of Executive Committee Agenda – 09/13/2018 • Executive Committee Meeting – 09/20/2018 CJPRMA • CAJPA Conference (09/11/2018 - 09/14/2018 South Lake Tahoe, CA) • Distribution of Quarterly Member Loss Data

October

• Member Quarterly Payroll Reports – 10/31/2018 November

• Deadline for Members to submit Agenda items for November Meeting – 11/05/2018 • Distribution of Board of Directors Meeting Agenda – 11/09/2018 • Board of Directors Meeting - 11/15/2018

o Actuarial Study Presented o Financial Audit Presented o Annual Report Presented

December

• Deadline for change to SIR or withdrawal from any CJPRMA program - 12/27/2018 • Distribution of Quarterly Member Loss Data

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AGENDA BILL

ITEM: 12 TITLE: NEW BOARD MEMBERS / ALTERNATES

MEETING: 11/16/17

GENERAL MANAGER:


Strategic Direction: This item addresses Strategic Goal 3, Foster Informed and Engaged Board Leadership.

Item Explanation: Notifications regarding a change in director/alternate designations that have been received as of the last meeting are indicated herein:

1) REMIF Director Amy Northam – General Manager (City of Sonoma)

2) REMIF Alternate Elena Piazzisi – WC Claims Administrator (City of Sonoma)

3) Roseville Alternate Hedy Dehghan – Assistant Human Resources Director

4) Stockton Director Gail Kiyomura - Deputy Director of Human Resources

5) Stockton Alternate Theresa Roland – Safety Manager

Fiscal Impact:

None Exhibits:

1. Letter – REMIF Director and Alternate change dated 9-18-17 2. Letter – Roseville Alternate change dated 10-16-17 3. Letter – Stockton Director and Alternate changes dated 10-18-17

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AGENDA BILL

ITEM: 13 TITLE: RISK MANAGEMENT ISSUES

MEETING: 11/16/2017

GENERAL MANAGER:

Recommended Actions: None. This item is being provided for information only.

Strategic Direction: Strategic Goal 3, Foster Informed and Engaged Board Leadership. Item Explanation: This item is reserved for the discussion of risk management issues that are of concern to the members and for the provision of status updates on the risk management program.

1. SB 496 – Changes in Contract Requirements for Design Professionals Immunity,

David Clovis, CJPRMA

2. Law Enforcement Legal Update - A Nationwide View of Shootings Involving Police Offers, David Clovis, CJPRMA

Fiscal Impact

None.

Exhibits: 1. Senate Bill No. 496 2. GENESIS – Insights Article October 2017, Law Enforcement Legal Update

Senate Bill No. 496

CHAPTER 8

An act to amend Section 2782.8 of the Civil Code, relating to indemnity.

[Approved by Governor April 28, 2017. Filed withSecretary of State April 28, 2017.]

legislative counsel’s digest

SB 496, Cannella. Indemnity: design professionals.Existing law provides, for all contracts, and amendments to contracts,

entered into on or after January 1, 2007, with a public agency, as defined,for design professional services, all provisions, clauses, covenants, andagreements contained in, collateral to, or affecting these contracts, thatpurport to indemnify, including the cost to defend, the public agency by adesign professional against liability for claims against the public agency,are unenforceable, except for claims that arise out of, pertain to, or relateto the negligence, recklessness, or willful misconduct of the designprofessional.

Existing law provides, with respect to contracts and amendments tocontracts entered into on or after January 1, 2011, with a public agency, asdefined, for design professional services, that all provisions, clauses,covenants, and agreements contained in, collateral to, or affecting thesecontracts or amendments to contracts that purport to require the designprofessional to defend the public agency under an indemnity agreement,including the duty and the cost to defend, are unenforceable, except forclaims that arise out of, pertain to, or relate to the negligence, recklessness,or willful misconduct of the design professional. Existing law provides thatall contracts and all solicitation documents between a public agency and adesign professional are deemed to incorporate these provisions by reference.

This bill would instead make these provisions applicable to all contractsfor design professional services entered into on or after January 1, 2018.The bill would prohibit the cost to defend charged to the design professionalfrom exceeding the design professional’s proportionate percentage of fault,except that in the event that one or more defendants is unable to pay itsshare of defense costs due to bankruptcy or dissolution of the business, thebill would require the design professional to meet and confer with otherparties regarding unpaid defense costs. The bill would also provide forcertain exemptions to these provisions.

The people of the State of California do enact as follows:

SECTION 1. Section 2782.8 of the Civil Code is amended to read:

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2782.8. (a) For all contracts, and amendments thereto, entered into onor after January 1, 2018, for design professional services, all provisions,clauses, covenants, and agreements contained in, collateral to, or affectingany such contract, and amendments thereto, that purport to indemnify,including the duty and the cost to defend, the indemnitee by a designprofessional against liability for claims against the indemnitee, areunenforceable, except to the extent that the claims against the indemniteearise out of, pertain to, or relate to the negligence, recklessness, or willfulmisconduct of the design professional. In no event shall the cost to defendcharged to the design professional exceed the design professional’sproportionate percentage of fault. However, notwithstanding the previoussentence, in the event one or more defendants is unable to pay its share ofdefense costs due to bankruptcy or dissolution of the business, the designprofessional shall meet and confer with other parties regarding unpaiddefense costs. The duty to indemnify, including the duty and the cost todefend, is limited as provided in this section. This section shall not be waivedor modified by contractual agreement, act, or omission of the parties.Contractual provisions, clauses, covenants, or agreements not expresslyprohibited herein are reserved to the agreement of the parties.

(b) All contracts and all solicitation documents, including requests forproposal, invitations for bid, and other solicitation documents for designprofessional services are deemed to incorporate by reference the provisionsof this section.

(c) For purposes of this section, “design professional” includes all of thefollowing:

(1) An individual licensed as an architect pursuant to Chapter 3(commencing with Section 5500) of Division 3 of the Business andProfessions Code, and a business entity offering architectural services inaccordance with that chapter.

(2) An individual licensed as a landscape architect pursuant to Chapter3.5 (commencing with Section 5615) of Division 3 of the Business andProfessions Code, and a business entity offering landscape architecturalservices in accordance with that chapter.

(3) An individual registered as a professional engineer pursuant to Chapter7 (commencing with Section 6700) of Division 3 of the Business andProfessions Code, and a business entity offering professional engineeringservices in accordance with that chapter.

(4) An individual licensed as a professional land surveyor pursuant toChapter 15 (commencing with Section 8700) of Division 3 of the Businessand Professions Code, and a business entity offering professional landsurveying services in accordance with that chapter.

(d) This section shall apply only to a professional service contract, orany amendment thereto, entered into on or after January 1, 2018.

(e) The provisions of this section pertaining to the duty and cost to defendshall not apply to either of the following:

(1) Any contract for design professional services, or amendments thereto,where a project-specific general liability policy insures all project participants

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for general liability exposures on a primary basis and also covers all designprofessionals for their legal liability arising out of their professional serviceson a primary basis.

(2) A design professional who is a party to a written design-build jointventure agreement.

(f) Nothing in this section shall abrogate the provisions of Section 1104of the Public Contract Code.

(g) Indemnitee, for purposes of this section, does not include any agencyof the state.

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Ch. 8— 3 —

Insights

On August 9, 2014, an 18-year-old African-American man named Michael Brown was fatally shot by a white police officer in

Ferguson, Missouri, which brought national media attention to fatal shootings involving police officers. The Washington Post has been tracking all fatal police shootings since Ferguson, and according to its data, for the past two years there have been just under 1,000 fatal police shootings per year. Mental illness played a role in almost 25% of the incidents.The Genesis Public Entity Claim Unit monitors this data and tracks police use of force nationwide through settlements and verdicts, as well as other law enforcement trends.

BY TED GAISFORD AND STEVE LEONE, GENESIS

LAW ENFORCEMENT LEGAL UPDATEA nationwide view of shootings involving

police officers

October 2017

The cases outlined in this publication are by no means all-inclusive and are intended to provide our clients with a representative sampling of case outcomes throughout the country.

2 Genesis Insights

Police Fatal Shootings – 2017

Source: The Washington Post, 10/13/17

773 people have been shot and

killed by police in 2017.

184involved

mental illness

963 people were fatally

shot by police in 2016.

“As of a week ago, there have been

18 more fatal shootings this year than at the same

time last year.”–The Washington Post, 10/13/17

1,000

800

600

400

200

0Jan. March May July Sept. Nov.

2017773

2016963

2015995

Number of People Fatally Shot by Police (last 3 years)

Mental illness played a role in almost 25% of the incidents.

Genesis Insights, October 2017 3

WA29

OR9

ID5 WY

MT3

ND2 MN

7 WI20

IL18

MS10

AL15

GA24

VT1

SC9

TN 22KY 11 VA 15

PA 16NY 11 NH 2

MA 2CT 4NJ 12

MD 8DE 4

D.C. 2

RI

NC 19

FL 50 PR

IN14

OH30 WV

9

MI10

ME9

IA3

MO28

AR8LA15

SD3

KS10

OK22

TX55

NECA129

NV12 UT

7CO22

AZ36

NM13

AK5

HI 3

Sources: https://www.washingtonpost.com/graphics/national/police-shootings-2017; https://github.com/washingtonpost/data-police-shootings, 10/13/17.

Police Fatal Shootings – 2017 by State

Police Body Cams With the evolution of technology everywhere, police body cams may be changing too. Some police departments are testing the use of smartphone cameras.

“The Jersey City Police Department is the first in the nation to test a new smartphone app called CopCast that allows officers to turn everyday cellphones into body cameras. After months of testing the system with 10 officers, the department is expected to sign an agreement this week to expand the technology to as many as 250 officers.”

–USA Today, 6/25/17

”A small number of police departments are showing interest in a new type of video camera that can be mounted directly on officers’ guns, saying it may offer a better view of officer-involved shootings than body cameras. Some law enforcement officials and civil rights groups are skeptical.” –phys.org, 10/14/17

Taser Litigation A report from Reuters found that 1,005 people died in the U.S. following interaction with police in which Tasers were involved. Key findings were:

> Autopsy findings—In at least 153 cases, Taser deployment was a cause or contributing factor in the deaths. Taser International has long argued that its weapons are almost never to blame.

> Settlements and award—More than three-fifths of the 366 concluded lawsuits against governments, resulted in judgments or settlements for the plaintiffs (220 settlements and 12 judgments).

> Reuters was able to determine the payouts in 193 cases, totaling $172 million paid by cities and their insurers. That dollar figure does not include three dozen cases in which settlements remained confidential or were unavailable.

> More than 440 lawsuits were filed against police and municipalities.

Source: Reuters, 8/22/17. Review of court documents, police reports, other public records and news accounts from 1983 through 7/31/17.

DID YOU KNOW?

https://www.washingtonpost.com/graphics/national/police-shootings-2017

4 Genesis Insights

2017

July 2017$7M verdict Ashley DiPiazza vs. City of Madison, WI

The jury found that two Madison police officers used unreasonable force when they shot and killed a 26-year-old woman who was pointing a gun at her head. (No mention of body cam video.)1

July 2017$15M verdict Leonard Thomas vs. Lakewood, et al., WA

An unarmed African-American man, who was drunk and suffering from bi-polar disorder, was shot and killed in front of his young son. Two armored vehicles and at least 27 officers, including a metro swat team, responded to a misdemeanor domestic violence call, which led to the fatal encounter. No firearms were found in the house. (No mention of body cam video.)2

June 2017$1.5M settlement Michael Brown vs. Ferguson, MO

An 18-year-old unarmed African-American man was fatally shot by a white police officer who argued that during the struggle, Brown was reaching into the police vehicle and the officer feared for his life. In the aftermath of the shooting, a grand jury declined to charge the officer with murder. Following the decision, widespread unrest, including protests and demonstrations, broke out in Ferguson as well as in other major U.S. cities. (No police body cam video.)3

June 2017$3M settlement Philando Castile vs. City of St. Anthony, MN

A 32-year-old man was fatally shot after a routine traffic stop (for a broken tail light) when the officer thought he was reaching for a gun. (In addition to police video of the incident, the aftermath was livestreamed on Facebook by his fiancée passenger.)4

May 2017$2.3M settlement Dontre Hamilton vs. City of Milwaukee, WI

A mentally ill African-American man was fatally shot in a 2014 confrontation with a white police officer. (No mention of police video.)5

April 2017$5.5M settlement Stanislav Petrov vs. Alameda County, CA

Petrov was severely beaten with metal batons by deputies while attempting to surrender. He led them on a 38-minute vehicle pursuit in a suspected stolen car. He sustained a concussion, deep head cuts and multiple fractures. Deputies stated that Petrov used his car to ram two patrol cars. The officers have since been fired and face assault with a deadly weapon and other charges. (Private surveillance video captured the incident.)6

March 2017 $10.25M verdict Elliott Williams vs. Tulsa County, OK

An inmate sustained an unexplained broken neck and spent five days in that condition, leading to his death. (Cell surveillance video was in place.)7

February 2017 $2.25M settlement Tanisha Anderson vs. City of Cleveland, OH

A mentally ill woman died of positional asphyxiation following a well-care call to police. (No mention of body cam video.)8

February 2017 $1.5M settlement Ezell Ford vs. City of Los Angeles, CA

A mentally ill African-American man was shot and killed by L.A. police during a struggle over an officer’s gun. (No mention of body cam video.)9

Examples of Settlements & Verdicts With Police Use of Force


February 2017$3.35M settlement Tony Robinson vs. the City of Madison, WI

A Madison officer fired seven shots and fatally shot an unarmed 19-year-old, who, according to news reports, had taken hallucinogenic mushrooms and had become combative with the responding officer. Robinson’s friend had called police because Robinson was acting erratically. (No mention of body cam video.)10

January 2017 $4.4M settlement Philippe Holland vs. City of Philadelphia, PA

The alleged wrongful shooting of a deliveryman, 14 times, resulted in extensive surgery and seizure disorder. (No mention of body cam video.)11

January 2017 $1.5M settlement Jeremy McDole vs. City of Wilmington, DE

The fatal police shooting of a 28-year-old wheelchair-bound man was captured on a by-stander’s video.12

2016

November 2016$3M verdict Jason Moore vs. St. Louis, MO

In the wake of the Brown shooting in Ferguson, a case was filed alleging the death by police stun gun of a mentally ill man in 2011. (No mention of body cam video.)13

November 2016$9M settlement Brandon Ellingson vs. State of MO

College student drowned after he fell out of a boat handcuffed and in an improperly secured life vest while he was in custody of a state trooper. (No mention of body cam video.)14

October 2016$3.75M settlement Eurie Stamps vs. Town of Framingham, MA

The 68-year-old grandfather of 12 was accidentally shot and killed by police during a drug raid. He was shot in the head while down on the floor as a SWAT team executed a drug-related search warrant at his home. His stepson was the target of the warrant. (No mention of body cam video.)15

September 2016$587,500 settlement Steven Askew vs. Memphis, TN

Police were investigating a noise complaint when they found the 24-year-old asleep in his car. MPD said Askew pointed a gun at the officers when they tried to wake him up. There were 22 shots fired, with 9 hitting him. The officers said, in conflicting statements, that Askew grabbed his gun, which was in the car. (Bystander video evidence.)16

September 2016$1.9M settlement Sandra Bland vs. Waller County, TX

A woman’s in-custody suicide by hanging at the county jail led to an allegation of wrongful death and a police officer’s indictment for perjury for making false statements about the circumstances surrounding her arrest. The charge was eventually dismissed in conjunction with an agreement with prosecutors, where the officer agreed to end his career in law enforcement in exchange for the dismissal. (Police body cam evidence of arrest.)17

September 2016$6.4M settlement Freddie Gray vs. City of Baltimore, MD

Gray, an African-American male, suffered a fatal spinal injury while he was transported in a Baltimore police van without proper restraints. Widespread protests broke out following the incident. The case garnered national media attention. (No police video.)18

September 2016$1.2M settlement Demoria Hogg vs. Oakland, CA

Firefighters saw the 30-year-old asleep inside a running car and called police because there was a gun on the passenger seat. Police spent more than an hour trying to wake Hogg, using a loudspeaker, breaking out the car’s windows and banging on the doors. A rookie police officer said she shot Hogg because he reached toward the gun. She was cleared of any wrongdoing. (No video evidence.)19

6 Genesis Insights

July 2016$3.75M settlement Esau Castellanos-Bernal vs. Chicago, IL

A father of three was shot and killed by two officers who claimed the pizza deliveryman opened fire on them after crashing his car. The family alleged excessive force claiming that the CPD detectives who investigated the shooting whitewashed the case—and that rigged investigations of police shootings were de facto city policy, citing that no gun was found. (No video evidence.)20

June 2016$22M verdict Arnold Black vs. East Cleveland, OH

Black alleged that following a brutal beating by a police detective, he was locked in a storage closet with no toilet for four days and given nothing to eat or drink except for a carton of milk. Black testified that the officers put him in the storage closet to hide the severity of his injuries. (No mention of video evidence.)21

April 2016$4.85M settlement Sam DuBose vs. University of Cincinnati (UC)

DuBose, an unarmed black male, was shot and killed by a UC police officer, following an off-campus traffic stop. The 43-year-old DuBose reportedly had 13 children with 11 different women. Under the settlement, the university will also establish a memorial for the victim, and it will provide a free undergraduate education for each eligible child. (Police body cam evidence.)22

April 2016$6M settlement Tamir Rice vs. City of Cleveland, OH

An officer fatally shot 12-year-old Rice who was playing with a toy gun in a park when police were called to the scene. This death was one of several high-profile incidents that propelled an ongoing national discussion over how police officers use deadly force. (Area surveillance video captured incident.)23

April 2016$1.95M settlement Justin Cook vs. City of Chicago

Cook’s family alleged that while Cook was handcuffed and detained, he had an asthma attack and died. Although he allegedly told the officers he was having difficulty breathing and needed medical attention, help was not provided promptly. (No video evidence.)24

April 2016$2.2M jury verdict Christian Eaddy vs. Los Angeles, CA

A well-care call received by police stated a 26-year-old mentally ill man had stabbed himself and was wielding two knives. When officers arrived, he refused orders to get on the ground and advanced at them. The responding officer fired a single fatal shot. During the civil trial, his family contended that the bullet struck Eaddy in such a way that it showed he had turned away from officers. (No video evidence.)25

April 2016$4.95M settlement Philip Coleman vs. City of Chicago

A mentally ill man died soon after police arrested him for domestic violence. A video in his holding cell showed police officers deploying a Taser 13 times before dragging him on the ground in handcuffs. An autopsy concluded that Coleman died from a reaction to an antipsychotic drug he received while receiving medical care later that day. The report also revealed that he had experienced severe trauma, including more than 50 bruises during the altercation with police. (Video evidence from jail cell.)26

March 2016$6M settlement Danroy Henry, Jr. vs. Pleasantville, NY

A local college student was parked in a fire zone late at night outside of a bar when an officer knocked on his window to ask him to move it. The student (with a .13BAL) reacted by attempting to speed off. Observing this, an officer from another town stepped in front of the car at which time the student is alleged to have accelerated toward the officer. Upon impact and while clinging to the hood of the car, the officer fired through the windshield striking and killing him. (Post incident bystander video.)27


2015

October 2015$6.5M settlement Walter Scott vs. North Charleston, SC

An unarmed, 50-year-old was fatally shot after being pulled over, reportedly for a broken brake light, and later shot in the back as he was running away from police. Not long after the shooting, the officer dropped his Taser next to Mr. Scott’s body, in what the prosecutors stated was an effort to plant evidence to cover up a murder. The officer eventually plead guilty in the shooting. This case garnered national attention. (Bystander video evidence.)28

September 2015$5.5M jury verdict Kenneth Smith vs. Cleveland, OH

Smith was shot and killed after a disturbance outside a downtown nightspot by an off-duty police officer. The prosecutor concluded that Smith was lunging for a gun and that the officer fired to protect others, but Smith’s family questioned that account suggesting he was shot when he was outside the car he’d been riding in—and away from a gun later found in the vehicle. (No video evidence.)29

July 2015$5.9M settlement Eric Garner vs. City of NY

Garner, an African-American man, was taken down and being held in an apparent chokehold by police. He had been apprehended for allegedly illegally selling cigarettes. He repeatedly yelled, “I can’t breathe! I can’t breathe!”—words that would later become a rallying cry at anti-police demonstrations. (Bystander cell phone video.)30

July 2015$4.7M settlement Zeferino vs. Gardena, CA

Zeferino settled for $2.8M and his injured coworkers, Mendez and Amado, settled for $1.7M and $200K respectively. They were with Zeferino looking for Zeferino’s brother’s stolen bicycle when officers mistook the three men as the robbers. The video, which is online, depicts the men with their hands raised as officers had their guns drawn. Zeferino then drops his hands near his waist multiple times, resulting in a flurry of shots, killing Zeferino and wounding his coworkers. (Police video mounted on two patrol cars.)31

July 2015$5M settlement James Boyd vs. Albuquerque

A schizophrenic homeless man, who was holding two knives, was shot and killed. The 2014 standoff occurred near a tent in the foothills of the Sandia Mountains where he had been camping. The incident sparked angry demonstrations around Albuquerque. (Police body cam evidence.)32

April 2015$650K settlement Francis Pusok vs. San Bernardino County, CA

Pusok was punched and kicked by a group of deputies following a pursuit on horseback. He had been a suspect in a theft investigation. When deputies arrived to serve a search warrant in an unrelated case, he fled, triggering the police chase. Eventually Pusok abandoned a car and stole a horse, officials said. (Bystander video KNBC TV helicopter.)33

April 2015$5M settlement Laquan McDonald vs. City of Chicago, IL

McDonald, 17, who police say was wielding a three-inch knife, was shot 16 times. The involved officer’s testimony was subsequently found to be in conflict with the police video, which led to the indictment of three of the officers. (Dash cam video captured the confrontation but there was a delay in releasing the video to the public.)34

February 2015$8.3M settlement Martin Harrison vs. Alameda County, CA & Corizon Health

A 49-year-old father of five was arrested for jaywalking and a warrant check revealed an outstanding failure to appear for a DUI. While in custody at the Santa Rita Jail, he was tasered and beaten to death while he was in life-threatening Delirium Tremens caused by the defendant’s failure to implement proper alcohol withdrawal protocols. An additional $1M was paid to settle one of the minor claims prior to mediating the rest. (No mention of surveillance cameras.)35 n

This information was compiled by Genesis Management and Insurance Services Corporation and is intended to provide background information to our clients, as well as to our professional staff. The information is time sensitive and may need to revised and updated periodically. It is not intended to be legal advice. You should consult with your own legal counsel before relying on it. Genesis provides reinsurance solutions to its clients through General Reinsurance Corporation and insurance through Genesis Insurance Company, which is licensed in the District of Columbia, Puerto Rico and all states. Genesis Insurance Company has its principal place of business in Stamford, CT and operates under NAIC Number 0031-38962.

©2017 Genesis Management and Insurance Services Corporation insightsshootings1710

A Berkshire Hathaway Company

About the AuthorsTed Gaisford is a Vice President & Sr. Unit Manager for the Genesis Public Entity Claim Division. He has 31years of claim experience and has earned his CPCU, RPLU+ and ARM designations. He may be reached at 213 236 1731 or [email protected].

Steve Leone is a Vice President & Team Leader for the Genesis Public Entity Claim Division.He has 27 years of claim experience and has served on the Connecticut Arbitration Forum panel and holds adjuster licenses in 14 states. He may be reached at 203 328 6637 or [email protected].

1 http://host.madison.com/wsj/news/local/courts/jury-awards-million-in-damages-after-finding-madison-police-officers/article_7afa930b-feb3-50c2-aa75-be6b11580fff.html

2 https://www.usnews.com/news/best-states/washington/articles/2017-07-14/15m-awarded-to-family-of-unarmed-black-man-killed-by-sniper

3 http://fox6now.com/2017/06/23/ferguson-attorney-brown-family-settlement-1-5-million

4 https://www.usatoday.com/story/news/nation/2017/06/26/philando-castiles-family-settles-suit-city-3-m/427872001

5 http://wislawjournal.com/2017/05/10/tentative-settlement-reached-over-milwaukee-police-shooting

6 https://www.copblock.org/172879/5-5m-settlement-for-man-beat-mercilessly-with-batons-by-cops; http://www.haddadandsherwin.com/results-detail.php?id=661

7 https://www.nytimes.com/2017/03/22/us/tulsa-verdict-jail-broken-neck.html?mcubz=0

8 https://apnews.com/75b72492ae294d7788cd60a8da6075fc/cleveland-settles-womans-excessive-force-lawsuit-225m

9 https://apnews.com/8d98d36e2ff34acba51a4c75afdc012f10 http://host.madison.com/wsj/news/local/courts/m-settlement-

reached-with-city-s-insurer-in-tony-robinson/article_e1b6fe7e-c1db-59d1-ac49-f7b22f4d6c05.html

11 https://www.rt.com/usa/372938-philadelphia-pays-44mn-after-cops12 http://www.wdel.com/news/no-civil-rights-charges-in-police-

killing-of-paralyzed-man/article_744f0288-d44a-11e6-b572-77e1a9a0aed8.html

13 http://www.insurancejournal.com/news/midwest/2016/11/07/431731.htm


15 http://whdh.com/news/family-of-man-killed-by-police-gets-3-75m-settlement

16 http://www.foxcarolina.com/story/33179011/family-agrees-to-settlement-in-case-of-fatal-2013-police-shooting

17 http://www.cnn.com/2016/09/15/us/sandra-bland-wrongful-death-settlement/index.html; https://www.nytimes.com/2017/06/28/us/sandra-bland-death-brian-encinia-texas-texas.html

18 http://www.cnn.com/2015/09/09/us/baltimore-freddie-gray/index.html

19 http://www.eastbaytimes.com/2016/09/21/oakland-to-pay-1-2-million-to-family-of-man-killed-by-police

20 http://chicago.cbslocal.com/2016/07/17/city-to-pay-out-3-75-million-to-family-of-man-killed-by-police

21 https://apnews.com/22ff06e566744cf5a54dc19575abcc2d/jury-awards-22m-man-who-says-police-locked-him-closet

22 http://local12.com/news/local/family-of-sam-dubose-fights-over-485-million-settlement

23 https://www.washingtonpost.com/news/post-nation/wp/2016/04/25/cleveland-agrees-to-pay-6-million-to-settle-tamir-rice-lawsuit/?utm_term=.24816e117f5b

24 http://www.ibtimes.com/chicago-pay-millions-police-misconduct-settlements-cpd-faces-scrutiny-task-force-2353431; http://www.chicagotribune.com/news/local/breaking/ct-police-asthma-lawsuit-met-1016-20141015-story.html

25 http://www.insurancejournal.com/news/west/2016/08/04/422337.htm

26 http://www.ibtimes.com/chicago-pay-millions-police-misconduct-settlements-cpd-faces-scrutiny-task-force-2353431; http://www.chicagotribune.com/news/local/breaking/ct-chicago-police-philip-coleman-settlement-met-20160404-story.html

27 http://www.lohud.com/story/news/local/westchester/2016/03/14/danroy-henry-shooting-settlement/81794846

28 http://www.cnn.com/2015/10/08/us/walter-scott-north-charleston-settlement/index.html; http://www.cnn.com/2017/05/02/us/michael-slager-federal-plea/index.html


30 http://www.cnn.com/2015/07/13/us/garner-nyc-settlement/index.html

31 http://www.latimes.com/local/lanow/la-me-ln-federal-judge-orders-release-of-videos-20150714-story.html

32 http://www.npr.org/sections/thetwo-way/2014/03/31/297163938/albuquerque-protest-of-fatal-police-shootings-turns-into-chaos

33 http://www.ocregister.com/2015/04/21/san-bernardino-county-to-pay-650000-to-suspected-horse-thief-beaten-by-deputies-admits-no-wrongdoing

34 https://www.nytimes.com/2015/04/16/us/chicago-pays-5-million-to-family-of-black-teenager-killed-by-officer.html?mcubz=3; http://www.cnn.com/2017/06/27/us/chicago-officers-indicted-laquan-mcdonald/index.html

35 http://verdictsearch.com/verdict/decedents-family-jail-failed-to-treat-withdrawal-symptoms; http://www.haddadandsherwin.com/results-detail.php?id=570

Endnotes

california joint powers risk management authority...nov 16, 2017 · case no.: cvpm-16-67506 . iv....

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